US MEK at highest level of the year, contributes to cost increases for industrial coatings

Deniz Koray

04-Dec-2019

HOUSTON (ICIS)–US methyl ethyl ketone (MEK) prices held steady this week as many market participants returned following the US Thanksgiving holiday.

MEK prices, which are at their highest of the year, were assessed by ICIS at 72-76 cents/lb ($1,587-1,675/tonne) ex-tank US.

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The high prices have been supported by ongoing issues at plants in the UK and Germany that began in the third quarter, which have tightened supply. However, supply has begun to loosen in recent weeks.

These production issues impacted US prices since MEK is not produced domestically. The US is supplied by imports from Europe, South Africa and Asia.

Demand has been seasonally low, which may have prevented additional price increases.

The increase in MEK prices is contributing to higher costs that could soon impact end users.

PPG Industries, a US-based supplier of paints and coatings, announced that it will implement a global price increase of up to 10% on industrial coatings.

The price change is effective 1 January or as soon as contractually permissible.

A PPG executive said in a news release that continued increases in costs were a key driver for the price hike.

More than half of global demand for MEK is derived from the paints and coatings industry.

Major MEK producers include ExxonMobil, Shell and Sasol.

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