Methyl N-Propyl Ketone Market in Germany Faces Downturn Amid Weak Demand in August 2024

In August 2024, the Methyl N-Propyl Ketone market in European countries experienced a downturn. This decline was attributed to both reduced production costs for the commodity and weakened demand for Methyl N-Propyl Ketone from the downstream construction sector. Lower performance in construction led to diminished demand for Methyl N-propyl ketone. Additionally, the decline in feedstock prices, specifically Acetone and Isobutylene, further contributed to lower production costs and reinforced the bearish market sentiment for Methyl N-propyl ketone.

In August 2024, the German Methyl N-Propyl Ketone market experienced a seasonal slowdown, with many businesses and industrial sectors, including construction, facing reduced activity during the summer holidays. This seasonal dip in market activity led to weakened demand for Methyl N-propyl ketone, contributing to the bearish trend observed during the month. Additionally, ongoing port strikes in Germany exacerbated the situation by causing delays in shipments and increasing port volumes. As a result, inventory levels of Methyl N-propyl ketone rose, further intensifying the market's downturn. The combination of sluggish demand, high inventory levels, and logistical disruptions from the port strikes compounded the bearish sentiment in the Methyl N-propyl ketone market, putting further downward pressure on prices.

On August 23, Germany’s Ver. di union rejected the final offers, which included a 12-month or 16-month option, proposed by the Central Association of German Seaport Companies (ZDS). Additionally, Ver. di announced plans for action on August 31 in Hamburg, preceding the vote on MSC’s proposed acquisition of a 50% stake in the Hamburg container terminal operator HHLA.

In terms of the downstream construction sector in Germany, the market witnessed a significant decline, particularly in the housing sector, although civil engineering displayed some resilience. The rate of decline in commercial building projects accelerated, marking the sharpest drop since the start of the year. Despite this, the civil engineering sector reported its smallest decline in activity since February, standing in contrast to the broader trend. Overall, weak demand conditions persisted, with the downturn in new orders extending to its longest period in two and a half years. Firms attributed the decline to customers' general reluctance, partly due to high interest rates. However, the rate of decline in new orders showed some easing for the second time in three months. Prices for building materials and products continued to decrease throughout August. Additionally, Germany's manufacturing PMI fell further and remained below the threshold limit, reflecting ongoing weakness in the manufacturing sector.

According to ChemAnalyst, the Methyl N-propyl ketone market in Germany is expected to continue its bearish trend due to the anticipated weak demand for Methyl N-propyl ketone from downstream construction enterprises. This ongoing softness in demand is likely to sustain the downward pressure on Methyl N-propyl ketone prices.