The global Neopentyl Glycol (NPG) market remained under pressure in the last three weeks of May 2025. Prices fell sharply in the Chinese market, meanwhile eased marginally in the western market. These market fluctuations are on account of several factors ranging from sufficient availability of raw materials, prevailing policy interventions, continued port congestion and changing patterns of demand.

In the Chinese market, NPG prices dropped by a notable percentage during the review period. This drop occurred in the face of an attenuating supply-demand gap in the market. The price of Formaldehyde, an essential raw material used to manufacture NPG, also dropped marginally during the same time. While this generally reduced input costs, overall market fundamentals, such as firm demand and sufficient local stocks, exerted a strong downward pressure on NPG prices. On the supply side, container shipping activities continued to be tight, as a result of changing global trade flow patterns and intermittent policy shifts.  To add to this, severe port congestion—especially in Northern and Central China, and weather-related disruptions at major hubs like the Port of Shanghai—have contributed to inventory accumulation. Simultaneously, NPG demand remained relatively stable, but not enough to offset the pressure of high inventory levels and constant production rates, leading to the seen price correction.

Similarly, in the North American market the price of Neopentyl Glycol (NPG) in the U.S. market fell amidst muted trading activity. After a short span of persistent restocking amidst fear of policy changes and high tariff rates, buying momentum decelerated slightly from the building and cement industries as traders have accumulated sufficient stocks. On the supply side, production levels and stock levels were adequate, with no near-term restrictions on availability. In general, consistent supply and contained demand together put downward pressure on NPG prices throughout the region.

In the same vein, Neopentyl Glycol (NPG) in the European market saw a modest fall. This is largely due to muted trading activity after a fleeting restocking phase, as downstream demand, particularly from the construction, and coating sectors was weak beneath the burden of high interest rates and lingering inflationary pressures. Supply-wise, output for NPG remained firm, with inventory levels sufficient to satisfy the prevailing demand. In the meantime, logistics problems such as ongoing port blockage, labor shortages, and lowered navigability of the Rhine River due to low water levels have resulted in build-up of stocks. The mix of consistent supply and diluted demand has consequently put downward pressure on NPG prices region wide.

As per ChemAnalyst analysis, the prices of NPG may make a potential shift towards the northward direction soon. Anticipated demand from the construction sector during the summer season may remain the key factor behind the NPG price surge.