Investment Rating - The report does not explicitly provide an investment rating for the MIBK industry Core Insights - The MIBK market in May 2025 showed a weak downward trend, with production and profit both declining significantly [5][6][15] - The average profit for the MIBK industry was reported at -1058 yuan/ton, a decrease of 29.02% compared to the previous month [6][54] - The production volume for May was 1.29 million tons, down 5.84% from April [6][35] Summary by Sections Market Analysis and Forecast - The MIBK market experienced a weak trading atmosphere in May, with the average price in East China at 8818 yuan/ton, down 6.34% from April [5][15] - The supply of MIBK is expected to decrease slightly in June, with a forecasted production of around 1.25 million tons, a 3.10% decrease [21][30] - Demand remains weak, particularly in the tire industry, which is expected to limit MIBK consumption [24][31] Fundamental Analysis - MIBK production decreased in May, with a capacity utilization rate of 50.86%, down 4.95 percentage points from April [35][39] - The overall consumption of MIBK remained low, with downstream orders significantly affected [39][40] - Import volumes for MIBK were negligible, while exports saw a significant decrease in April [42][49] Profitability - The average profit for MIBK production in May was -1058 yuan/ton, reflecting a significant decline from the previous month [53][57] - The profitability of the MIBK industry is under pressure due to high costs and inventory levels [54][57] Supply and Demand Balance - The supply-demand gap for MIBK is projected to decrease slightly in June, with total demand remaining stable at 0.9 million tons [30][31] - The market sentiment among participants is mixed, with some expecting stability while others anticipate further declines due to weak demand [29][31]