The European spot truck price of methyl ethyl ketone hit fresh lows for the year to date this week as product availability continued improving in Europe.
The MEK truck price was assessed down Eur70/mt Tuesday at Eur1,700/mt (about $2,088/mt) FD NWE, with market indications heard in a Eur1,690-1,720/mt range. This is an eight-month low, the lowest level since August 1, 2017, when it was Eur1,520/mt.
This market the eighth consecutive week of prices decreases in Europe, starting February 13 when the MEK assessment fell Eur60 to Eur2,040/mt.
Competitive offering had been persistently seen on MEK throughout March as lower priced iso-tank imports surfaced in Europe, which added to the bearish pressure.
Some market participants explained the downside moves were more due to a gradual rise in supplies than any sudden shift in fundamentals.
However, with EU REACH regulations set to take effect from May, sentiment was uncertain whether imports will be compliant in the future. Some market participants said this could cap the downside moves on MEK, while supply tightness also took grip on the substitute solvent Etac.
MEK prices remained at strong levels above Eur2,000/mt for several months, having risen substantially to a peak of Eur3,150/mt on August 22, from the Eur1,520/mt recorded at the start of the month.
While the initial bullishness was triggered by a supply crunch, prices have since been gradually easing.
- Platts.com
