Strong micro economic indicators push MEK prices in India – 27 Jun 2014

The bulk price of Methyl Ethyl Ketone (MEK) has been gaining momentum in the Indian markets since second half of this month due to a hike in the booking price and strong demand from end user segments.

During May, 2014, the bulk price of MEK, Ex-Kandla averaged to Rs. 97 per kg (exclusive of all taxes), and the website notes that the prices were more or less stable at this range. However, since the second half of June, 2014, the price has been escalating and reached as high as Rs. 104 per kg, Ex Kandla (exclusive of all taxes).

The bulk prices have escalated as the booking price of MEK has gained weight by $20-30 per metric tonne  to current range of $ 1,450-1,460 per metric tonne FOB Korea. 

Additionally, a prominent trader added, "Strong demand from paint coating and pharmaceutical industry has maintained the current highs in the bulk price of MEK. Also declining Indian rupee has added further pressure on these prices (bulk)".

Currently, the bulk price has declined to levels of Rs. 102 per kg (exclusive of all taxes), Ex- Kandla.

In India, Cetex Petrochemicals is the sole manufacturing facility of MEK. Typically the commercial route of manufacturing MEK is through dehydrogenation of secondary butanol.  Some companies also manufacture MEK through sulphuric acid hydration of n-butene to make the secondary butanol.