Stability Reigns in North American and European Neopentyl Glycol Markets Despite Soft Demand

Neopentyl Glycol market in the North American and European regions achieved stability during the second half of October. This stability was maintained even in the face of a somewhat modest performance in the USA's downstream paints and coatings industry. This stability can be attributed to producers utilizing existing stocks and a lack of new inquiries during this period. Additionally, the sustained stability of upstream Methanol prices in both the USA and German markets played a supporting role in the ongoing price trend of Neopentyl Glycol.

In the US market, suppliers are exercising caution regarding further price reductions. This caution stems from the relatively modest demand and the limited number of firm bids and offers among suppliers. Notably, the cost pressure from the upstream material, Methanol, has remained subdued during this period, contributing to the current price stability. The supply situation remained robust during this period. Despite this, a combination of improved supplier performance and ongoing soft demand conditions has led companies to reduce their input purchases for the fifteenth consecutive month in October. Regarding trade flow, the export of Neopentyl Glycol from the USA to Mexico and other South American countries has been lackluster, with limited demand in the domestic market. These factors are having an impact on the overall price trend. Market participants are primarily concerned about the narrowing profit margins and declining sales, motivating them to maintain stable pricing of Neopentyl Glycol.

Interestingly, Indian market players were actively stocking up Neopentyl Glycol from the US market due to the strong performance of the downstream paints and coatings sector and the construction industry. This increased activity can be attributed to the upcoming festive season in India, which is bolstering demand.

Likewise, in the German market, the price of Neopentyl Glycol remained steady during the latter part of October 2023. The lackluster performance of the end-user construction sector in Germany and other European countries that import this product put downward pressure on the demand for Neopentyl Glycol. Nevertheless, as Germany continued to limit its exports due to increasing inflationary pressure and economic slowdown, abundant supplies were available within the German market. However, it's noteworthy that there was sustained demand for Neopentyl Glycol from the international market despite the absence of new inquiries or bids from international buyers. Much like in the US market, players in Germany are primarily concerned about diminishing profit margins and decreasing sales. This concern is prompting them to maintain stable pricing for Neopentyl Glycol.