Demand and supply in past five years and next five

years
Market in past five years
The global methyl ethyl ketone (MEK) market was valued at USD 2.56 billion
in 2015 with a constant YOY growth of 4.72 % over the period 2014-2019.
The global MEK market demand was 1.42 million tons in 2013. Asia Pacific
dominated the global MEK industry and accounted for 56.3% of total market volume in 2015.
The leading producer of methyl ethyl ketone is Asia Pacific region with China
being the main market driver and its share in the world production capacity
is growing year on year. Market in India was valued at USD 140 million in
2014 and is growing consistently at 7.8 % over the period 2011-2016. The
market can be segmented into five based on application: paints and
coatings, adhesives and thinners, printing inks, pharmaceutical products,
and others. Major MEK demand portion is accounted by paints and coatings,
where it is widely used as a solvent . Paints and coatings industry consumes
about 60% of total Methyl ethyl ketone (MEK) output . Urbanization and
industrialization in emerging economies of Asia Pacific and the Middle East
have driven the need for better infrastructure. Increasing construction
spending by governments particularly in China and India to meet the rising
infrastructure needs has been driving the construction industry gro wth
which in turn is has increased the demand for adhesives, printing inks,
plastics, paints, and coatings demand over the past decade. However the
demand of MEK in adhesives industry has been stagnant due to better
alternatives to MEK.

Market outlook in next five years

Global MEK market is expected to show stable growth in the coming years
mainly thanks to developing countries, while developed ones will show
moderate growth rates. The Global Methyl Ethyl Ketone (MEK) market is
expected to grow at a CAGR of 5.01% to reach $3.64 billion by 2022. The
global MEK market demand was 1.42 million tons and is expected to reach
2.11 million tons by 2024, growing at a CAGR of 4.5% from 2016 to
2024.The demand in the textiles, printing inks, and plastics industries for
MEK is anticipated to increase. Printing inks segment is anticipated to growth
at a CAGR of 4.9% from 2016 to 2024. MEK is widely used in inkjet inks
owing to its quick evaporation rate and solvency which is expected to
enhance overall volumes in the near future. Moreover, growing packaging
industries will serve the market growth. Furthermore, increasing usage of
MEK in pharmaceutical applications shows a positive impact on the market
growth. Positive demand outlook for adhesives, printing inks, paints, and
coatings, on account of increasing construction spending, particularly in Asia
Pacific and Middle East is expected to remain a key driving factor for the
global MEK market. MEK also finds applications in pharmaceutical and
personal care industries where it is used for manufacturing antiseptics,
anesthetics, lotions, and drugs. The growth of pharmaceutical and personal
care industry on account of increasing healthcare expenditure in Asian
countries and presence on sophisticated healthcare infrastructure in the U.S.
and most parts of Europe is also expected to fuel its demand over the
forecast period. Printing ink applications presently account for over 200 kilo
tons of global Methyl Ethyl Ketone (MEK) market size. It is extensively used
and preferred solvent in printing industry owing to advantages offered such
as excellent drying times, adhesion with substrates such as plastics, metals
& glass and allowing formulation of specialized inks. MEK market price trend
benefited from the global crude slump, however, expected recovery in 2017
along with regulatory pressure may challenge industry profitability. Growing
importance for MEK peroxides as catalysts in polymerization of polyester
resins and as a cleaning agent, varnish and paint remover will drive growth
throughout the forecast timeframe.
The growth of the MEK market is expected to be
limited by certain factors such as the health issues associated with use of
MEK, the volatility in raw material prices, as well as the growing demand for
its substitutes. The VOC emissions associated with production of MEK are
posing a serious problems to the environment and the governments of
various countries have imposed some rules and regulations on its production
which in turn may hinder the growth in coming years.
Producers and Vendors
Historically, MEK capacity was concentrated in the three major regions
(United States, Western Europe, and Japan); these regions accounted for 75%
of total MEK capacity in 2003. In 2014, the United States was no longer a
producer and Western Europe and Japan together accounted for about 43%
of global MEK capacity. China alone made up 38% of total world capacity in
2014. In 2014, MEK supply was tightparticularly in the United States.
Several vessels were delayed getting into the Gulf Coast beginning in the
second quarter; there were also some supply issues with product coming
from Brazil, and an explosion at Shells MEK plant in the Netherlands resulted
in a unforeseeable circumstances ultimately leading to sales allocations.
Western European MEK demand has been impacted by increased use of
recycling and process optimization. There has been widespread interest in
reformulating to replace or reduce MEK usage, especially in times of supply
shortages or high prices. In recent years major producers have planned on
expanding the production capacity in order to meet the increasing demand
of Methyl ethyl ketone. ExxonMobil Chemical and Maruzen Petrochemical
were the leading companies in the global Methyl Ethyl Ketone (MEK) market
share and accounted for over 35% of overall demand in 2014 collectively.
Key Vendors

Exxon Mobil
Lanzhou Petrochemicals
Maruzen Petrochemical
Royal Dutch Shell
 Sasol

In India the major producers are Cetex Petrochemicals India Ltd and Adinath
Petrochemicals Ltd.
Production capacity / licensed capacity in the country
Manufacturers Capacity Output in 2012 Output in 2014

Cetex 10000 4000 8000

Petrochemicals
India Ltd
Adinath 3000 2000 3000
Petrochemicals
Ltd
Kerox Chemicals 3000 1500 2500
Ltd
*Figures in tonnes p.a.
The Government of India ( GOI ) had earlier given a license for capacity of
5000 MT . Cetex Petrochemicals renewed their license in 2013 with new
capcity of 10000 MT. Current demand for MEK in india hovers around
30000 MT pa. Western and northern India account for almost the entire
domestic consumption since almost all end use industries are situated in
these regions. Presently the Indian manufacturers are producing a total of
13000 MT /pa while the rest 2000 MT / pa is being imported from countries
mainly Taiwan , South Africa, USA. MEK plants are in Chennai and Gujarat.
Cetex has developed their own technology to manufacture Methyl Iso-
Butyl Ketone and are planning to open a plant in Northern part of India
which will have a capacity of 30000 MT.
Export and Import status in India
Consumption of MEK in India as estimated by Ministry of Chemicals and
Fertilizers , GOI

Year Consumption
2007-08 21.88
2008-09 20.37
2009-10 24.45
2010-11 21.33
2011-12 31.98
2012-13 33.68
2013-14 30.50
2014-15 35.14
*Consumption in 000 MT
Imports of MEK during 2007-2015 reported by Ministry of Chemicals and
Fertilizers , GOI

Year Quantity (MT) Value (Rs. Lakh)

2007-08 22091 10332
2008-09 20668 13121
2009-10 24556 11352
2010-11 21384 11356
2011-12 30220 24334
2012-13 31597 25591
2013-14 27239 21386
2014-15 27539 25539

Exports of MEK during 2007-2015

Year Quantity (MT) Value (Rs. Lakh)

2007-08 207 217
2008-09 304 466
2009-10 111 139
2010-11 56 184
2011-12 428 501
2012-13 408 390
2013-14 460 2382
2014-15 673 922

Import Destinations of MEK in 2014-2015

Country Quantity (MT) Value ( Rs. Lakh)

Taiwan 16183.77 15169.09

South Africa 6941 6465.3

China 2588 2315.9

Japan 1647 1447.49

Korea RP 150 113.87

Total 27510 25512.84

The prices of MEK in India are at around 70-140 per kg are comparatively low as
compared to other producing countries. The prices are still more compared to
China. Huge manufacturers of Europe and USA are setting up their production
facilities in China due to the low cost, cheap labor, and skilled workforce.
Export Destinations of MEK in 2014-2015

Country Quantity (MT) Value ( Rs. Lakh)

Singapore 435.03 330

Pakistan 192 23.46

Switzerland 38.77 535.6

USA 3.80 5.55

Nepal 3.10 4.22

Total 672.71 921.70