The prices of methyl-n-propyl ketone (MPK) in India have seen a notable increase in February 2025, due to an increase in the production costs among the manufacturers. Further, this rise is attributed to both supply-side constraints and an uptick in demand for MPK across several industries, particularly in the downstream sectors of paints and coatings as well as polymers. Weak festive demand and sustained slowness in urban centers adversely impacted sales. While downtrading is observed in some areas which affects the overall value delivery of MPK.

India’s construction sector showed mixed performance in February 2025, as industrial output growth slowed. While infrastructure and construction goods output rose, concerns over weak household demand and sluggish consumer non-durables production tempered overall sector optimism. Industries such as paints and coatings have been ramping up production due to recovery in the construction and automotive sectors globally. MPK is a vital solvent used in many of these products, adding to its growing demand. As per Asian Paints, new products contributed to over 12% of overall revenues in Q3 as government spending showed traction after three-quarters of the slow movement.

On the manufacturing front, the key economic indexes rose, supported by strong domestic and export demand. New export orders inclined notably in February, as producers continued to make use of robust global demand for their goods. This boosted new orders and output, signalling resilience in industrial activity, which impacts construction demand. As a result, producers continued to expand their workforce numbers in February, extending the current period of employment growth. Manufacturers again ramped up purchasing activities of MPK, as a result of positive client interest, the pre-production inventories rose again in February. 

As per ChemAnalyst, the price hike may be modest in the short term for MPK, ongoing factors such as regulatory pressures, raw material availability, and energy costs could result in further increases. Companies in the downstream industries may need to find ways to optimize their supply chains and improve production efficiencies to mitigate the impact of rising raw material costs. The current trends in supply chain disruptions, rising raw material costs, and growing demand from key downstream industries like paints, coatings, and polymers, it is anticipated that the price of methyl-n-propyl ketone (MPK) could experience further increases in the near term. Also, the MPK dependent industries such as automotive and construction, exhibit signs of expansion, the demand for this chemical could further exert upward pressure on prices. Companies will need to monitor these developments closely and may face additional cost pressures for MPK in the coming months.