In December 2024, the Methyl N-Propyl Ketone (MPK) market in Germany faced bearish market sentiments due to several contributing factors. The primary reason was the reduction in production costs of MPK, largely influenced by the declining feedstock Propylene market. Additionally, there was a noticeable drop in demand for MPK from key downstream industries, specifically the Coating and Construction sectors amid the struggling performance of the downstream sectors.

In December 2024, the MPK market in Germany experienced a declining trend due to weak demand, resulting in reduced new orders and continued job and inventory cuts, though at a slower pace. The market's struggle was further exacerbated by political uncertainty and economic concerns, leading to low business confidence and a noticeable decline from the previous month. The chronic weakness of the German economy added to the market's difficulties. Despite logistical issues caused by port congestion in Hamburg due to labor shortages and strikes, the MPK supply chain remained relatively unaffected, due to ample inventory levels in storage. Overall, the MPK market faced ongoing economic challenges and cautious behavior from market players during this period.

Furthermore, the downstream Construction sector in Germany continued to exhibit bearish trends impacting the demand for MPK, mirroring broader economic challenges and resulting in subdued market sentiments. Conversely, the downstream Paints and Coating sector demonstrated resilience despite economic uncertainties. Companies within this sector adopted strategic transformations to maintain their competitive edge, successfully navigating the challenging economic landscape.

The European construction sector faced continued pressure, marked by persistent contractions that reflected broader economic challenges. Although construction activity indexes rose slightly, they remained well below the growth threshold, highlighting consecutive months of decline. The housing sector experienced its steepest contraction since September, while commercial and civil engineering sectors witnessed marginally slower declines. Germany continued to struggle, with new orders across the eurozone falling for the 33rd consecutive month and accelerated employment declines signaling ongoing difficulties for the sector. Market players reacted to the struggling sector by declining their ex-quotations of MPK, resulting in bearish market sentiments in Germany. While expectations of interest rate cuts in 2025 may offer some relief, significant recovery will likely require more aggressive monetary easing to address the housing crisis and sluggish new orders.

As the new year begins, the MPK market in Germany is expected to see a positive trend, with market players likely to increase their ex-quotations. This anticipated rise in MPK is driven by a slight improvement in the downstream Coating and Construction enterprises and a strategic response to market conditions. As a result, industry stakeholders are optimistic about the growth potential and are preparing to adjust their pricing strategies accordingly.