Methyl Ethyl Ketone (MEK)
The main application for methyl-ethyl ketone (MEK) is as a low-boiling solvent for nitrocellulose, acrylic and vinyl surface coatings. About 63% of global MEK demand is derived from the paints and coatings industry. Its advantage is that low viscosity solutions can be obtained, having a high solids content, without affecting the film properties. The lacquers are used in the automotive, electrical goods and furniture industries.
MEK can also be used in rubber-based industrial cements and printing inks. Its fast evaporation rate makes it popular for rubber-based industrial cements, low-temperature bonding agents and as an azeotropic separation solvent for printing inks. It is also a component of the solvent system used in producing magnetic tape. Demand for adhesives and video tape applications is increasing.
In addition, MEK is a solvent required for the polymerisation processing of polystyrene, acrylonitrile-butadiene-styrene, and styrene-butadiene-rubber while a derivative, methyl ethyl ketone peroxide, is used as a hardening agent in reinforced polyester fibre glass manufacture.
MEK irritates the eyes and throat leading to coughing, headaches and nausea. It is highly flammable.
ICIS pricing quotes MEK in Europe, Asia-Pacific and the USA.
Frequency: Published weekly on Fridays.
Methyl Ethyl Ketone (Europe)
Weekly Price Assessments:
MEK Spot Prices
- FD NWE (EUR/MT & conversion to US CTS/LB)
Methyl Ethyl Ketone (Asia-Pacific)
Weekly Price Assessments:
MEK Spot Prices
- CFR N.E. Asia (USD/MT & conversion to US CTS/LB)
- CFR S.E. Asia (USD/MT & conversion to US CTS/LB)
Methyl Ethyl Ketone (USA)
Weekly Price Assessments:
MEK Monthly Contract Prices
- Del E Rockies (US CTS/LB & conversion to USD/MT)
MEK Spot Prices
- EX-Tank FOB (US CTS/LB & conversion to USD/MT)
- FOB Export (US CTS/LB & conversion to USD/MT)
Assessment Window: Price assessments are based on information supplied by market participants through the week up to close of business on Fridays at 1800 hours in London, Singapore and Houston.
Product Specification: ICIS pricing quotes material that has a minimum purity of 99.0-99.5%.
Timing: Cargoes loading or delivered four-six weeks forward from the date of publication.
Terms: Credit terms up to 30-90 days.
Standard Cargo Size: Shipment sizes vary from small bulk parcels of 300-500 tonnes in Southeast Asia, to bulk lots of 500-1,000 tonnes in China and Korea. In Europe, each truck averages 23 tonnes. In the US, truck- and railcar-delivered parcels average 46,000 lb and 190,000 lb in size respectively.
Assessment Basis: ICIS pricing covers freight delivered by ship, truck and railcar, depending on the region. The Asian coverage focuses on bulk lots delivered by ship. In Europe, ICIS pricing tracks parcels delivered by truck. In the US Gulf, prices are quoted on truck and railcar delivered basis.
Spot price assessments are based on information gathered throughout the week (Monday to Friday) from market players comprising producers, end-users and traders. The process of evaluation takes into consideration rumoured, reported and confirmed deals; bids and offers; and buying and selling indications. In the absence of trades, the published price range may be adjusted on a notional basis to accurately reflect the levels at which trading activity could take place. Factors such as deep-sea cargo movements; supply/demand balance; plant operating rates; feedstock and derivative markets; and general market sentiment are also taken into account.
In Europe, spot prices are typically indicative of business confirmed between producers and traders/distributors, who then re-sell to the resins sector.
In Asia, the CFR NE Asia price quote mainly reflects trades into South Korea, which is entirely dependent on MEK imports. Spot liquidity in China has dwindled in recent years due to the proliferation of domestic plants in the country, making it self-sufficient in MEK. In addition, the implementation of the anti-dumping duties (ADD) ranging from 9.6% to 66.4% on MEK imports from Japan, Singapore and Taiwan effective since November 2007 has also hurt demand for imports. Deals in the China market, however, will be mentioned in the text of the report including details regarding the domestic market situation.
In the US, spot tank values are assessed based on prices paid by consumers and distributors for truck and railcar quantities of spot material. The spot export values are assessed based on prices paid by consumers for barge quantities of spot material. For both quotes, more emphasis is placed on the latter portion of the week with respect to changes in published prices.
The contract values in the US represent delivered prices paid by distributors East of the Rockies prior to any discounts or incentives. Published prices are representative of full truckload and railcar quantities.
All regional reports offer market commentary that includes details of traced transactions, news on the supply/demand balance, export/import information, contract price negotiations and general sentiment for price direction. Where applicable there is product information, comments on up and downstream market developments and general market intelligence.