Global Market Outlook on Methyl Isobutyl Ketone

  • The global market is estimated to grow at a CAGR of 2.5–3.0 percent during 2018–2022 
  • Increasing demand from the paints and coatings segment, alongside CPG and automobile industries, is likely to drive the demand for MIBK in the emerging markets, such as Asia, Brazil, and Eastern Europe, while demand growth in Europe and North America is expected to remain moderate

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Demand Market Outlook

  • The global MIBK market has abundant supply; however, regionally, North America, Europe, and APAC are dependent on imports, predominantly from Sasol, South Africa
  • MIBK demand will continue to be driven by the paints and coatings segment, followed by the tire segment, driven by growing investment in economies, such as Brazil and India

Global Market Size: MIBK

  • There was a steep dip in MIBK prices in 2015 as against 2014, backed by the decreasing feedstock acetone and propylene prices and the overall sluggish downstream demand markets 
  • Crude oil abundance and expected stability in feedstock prices at the lower limits are expected to stabilize the MIBK market value 
  • An expected marginal increase by 1–2 percent annually through 2022 would be driven by the global demand; however, may not reach 2015 levels again

Global Capacity–Demand Analysis

  • No expected capacity additions, due to a moderate growth of 2.5 percent across the globe for MIBK in the paints and coatings segment
  • Overall, the global demand –supply scenario is expected to remain stable

Market Outlook 

  • Capacity: There are no planned capacity additions announced until 2022, as moderate demand is noticed in most parts of the world 
  • Operating rates and multiple short-term shutdowns: Suppliers in Japan and China have been announcing temporary plant shutdowns for the past one year, due to weak margins. Operating rates range from 50 percent to 80 percent among suppliers across the producing regions 
  • Demand: The global MIBK demand is expected to increase at the rate of 2.5–3.0 percent through 2022, especially from the paints and coatings segment in the developing countries

Engagement Outlook 

  • It is recommended to engage in multiple sourcing options, since there is a limited supply security, especially with Asian suppliers 
  • There is high supplier security with European and North American suppliers, since they are backward integrated with no expected plant shutdowns 
  • Small and medium-volume buyers in CPG are recommended to engage in long-term contracts to ensure supply security