According to customs data, China exported a total of 83,389.42 metric tons of methyl ethyl ketone (MEK) in the first half of 2021, with an export value of 85.8688 million USD and an average price of 1,029.73 USD per ton. Export volume in the first half was significantly lower than the previous year’s level: China exported 118,554.36 tons in 2020, representing a year-on-year decrease of 29.66% in 2021.
Source: Jinlianchuang
As shown in the chart, China’s MEK exports in the first half of 2021 generally declined first and then rebounded. Exports were relatively high in January and June, at approximately 18,500 tons and 19,800 tons respectively, while April saw the lowest volume at around 10,000 tons. Overall, monthly exports remained above 10,000 tons.
Export volumes differed sharply between this year and last year, especially in March and April. This gap reflects contrasting industry conditions during the same period in the two years.In 2020, international MEK facilities underwent changes in March: following a shutdown at Ineos’ plants, European offshore prices surged. Meanwhile, domestic demand recovered slowly due to the pandemic. Supported by policy incentives such as higher export tax rebates, domestic enterprises relied heavily on export channels, resulting in strong export volumes in March–April 2020.
In 2021, by contrast, numerous domestic MEK plants underwent maintenance in March–April, including Ningbo Jinfa, Xinjiang Tianli, Fushun Petrochemical, Hebei Zhongjie, Hunan Zhongchuang and Taizhou Petrochemical. Supply remained tight for an extended period. In addition, strong holding sentiment among traders reduced available export volumes. Furthermore, the global pandemic remained severe, with outbreaks in Southeast Asia and other regions constraining demand in neighboring countries. As a result, exports continued to contract in March–April 2021, falling far short of the year-earlier level.
Source: Jinlianchuang
China’s MEK exports in the first half were mainly directed to South Korea, Vietnam and Indonesia, with exports of 30,500 tons, 14,000 tons and 8,900 tons respectively, accounting for 65% of total exports. Exports to other regions were generally low, mostly below 5,000 tons.
Source: Jinlianchuang
The top two sources of China’s MEK exports in the first half were Shandong Province and Guangdong Province, followed by Zhejiang and Hunan as third and fourth. Shandong exported 58,000 tons, Guangdong 13,500 tons, Zhejiang 3,500 tons, and Hunan 3,400 tons.
Looking to the second half of the year, MEK exports in the third quarter are expected to remain weak compared with last year. Planned maintenance at major producers including Qixiang Tengda and Lanzhou Petrochemical will keep market supply tight. Coupled with high domestic prices, export conditions remain difficult, so export volumes are likely to stay low.
However, Taizhou Petrochemical plans to restart its plant later, with operations expected to return to normal in the fourth quarter. As domestic supply increases, local prices may come under downward pressure. Attention will be paid to potential adjustments in international plant operations and developments in the global pandemic. In the fourth quarter, domestic enterprises may rely more on exports, with export share expected to rise.
