CHEMICAL PROFILE: Methyl Ethyl Ketone (MEK)

15 September 2006 16:13  [Source: ICB Americas]

DEMAND
2004: 425m pounds; 2005: 427m pounds; 2009: 440m pounds, projected. Demand equals production plus imports (2004: 39m pounds; 2005: 92m pounds) less exports (2004: 161m pounds; 2005: 71m pounds).

GROWTH
Historical (2000–2005): -0.1% (negative) per year. Future: 0.7% per year through 2009.

PRICE
Historical (2000–2005): High, 80 cents per pound, tanks, Gulf, contract, dlvd. East; low, 33 cents, same basis. Current: 60–64 cents, same basis.

USES
Coatings solvents, 53%; adhesives, 15%; chemical intermediates, 8%; lube oil dewaxing, 6%; magnetic tapes, 5%; printing inks, 5%; miscellaneous, 10%.

MARKET PERSPECTIVE
Last December, the EPA (Environmental Protection Agency) amended the list of hazardous air pollutants (HAP) contained in section 112 of the Clean Air Act by removing MEK.
This action was in response to a petition submitted by the Ketones Panel of the American Chemistry Council on behalf of MEK producers and consumers to delete MEK from the HAP list. While this is good news for producers and users of MEK, it is not likely that short-term benefits will follow. Product reformulation is expensive for any manufacturer and the benefits will likely be realized only as new product opportunities are identified.
MEK has been in decline as a solvent for coating applications since the late 1980s when the EPA first proposed to limit volatile organic compounds and classify MEK as a hazardous air pollutant. MEK consumed in coating applications was 340m pounds in 1988, but had declined to 228m pounds in 2005. The decline has slowed in recent years, indicating that a smaller but stable market may have been achieved.
The use of MEK in adhesives, chemical intermediates and printing inks represents strongest segments of growth – all growing 2–3% annually. Together, these segments make up 25% of MEK’s demand.
MEK is used in solvent blends for ureth-ane lacquers that are used to coat magnetic tapes for computers, instrumentation and video and audio equipment. Consumption in this application has decreased over the last few years, especially with the rise of CDs and DVDs. There has been increased competition from waterbornes, other solvent sys- tems, better solvent recovery and the increas-ing shift to CDs and DVDs. Therefore, MEK in this application is expected to decline over the forecast period by 2% annually.
MEK functions as a dewaxing agent during the refining of lubricating oils. More-efficient engines today produce fewer emissions, decreasing MEK demand in dewaxing operations. During the forecast period, this sector is anticipated to be flat.
After the closure of Shell’s MEK plant in Norco, La., the US went from being a net ex-porter of MEK, to a net importer. Between 2003 and 2005, imports of MEK increased from 34 to 92m pounds, while exports de-clined from 250 to 71m pounds. This period also saw MEK pricing nearly double, when in the spring of 2005 MEK contracts hit a high of 80 cents per pound.

OUTLOOK
MEK is a mature product, but with the strong economy all sectors except lube oil dewaxing and magnetic tapes are growing modestly, with an aggregate growth rate of 0.7% for the forecast period predicted. The market will remain tight and will be dependent on imported material to balance demand.

    


US MEK CAPACITY, millions of LBs./year

Company	Location	Capacity
Celanese	Pampa, Tex.	90
ExxonMobil Chemical	Baton Rouge,La.	300
SOURCE: ICBA
*Millions of lbs./yr. of methyl ethyl ketone (MEK), or 2-butanone.   ExxonMobile produces methyl ethyl ketone by the catalytic dehydrogenation of sec-butanol. The alcohol is obtained in a two-step process starting from butenes. Celanese derives methyl ethyl ketone as a byproduct in acetic acid production by the liquid-phase oxidation of n-butane.   In September of 2004, Shell Chemicals closed its 300m pound-per-year MEK plant in Norco, La. This represented about 44% of US capacity

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