For the Quarter Ending June 2025
North America
• The Neopentyl Glycol (NPG) Spot Price in North America remained stable with a slight change of 0.015% quarter-over-quarter in Q2 2025, reflected in a stable Price Index.
• In the second quarter of 2025, the North American NPG market, particularly in the USA, exhibited a mixed Price Index trend influenced by shifts in demand, input costs, and weather disruptions.
• Early in the quarter, the NPG Price Index remained steady, supported by stable feedstock costs, consistent manufacturing activity, and adequate inventories across domestic markets.
• Economic uncertainties and muted construction activity led to subdued downstream demand, keeping procurement levels moderate and the Price Index stable.
• A brief uptick in the Price Index was observed mid-quarter, driven by a temporary increase in feedstock costs and restocking activities from downstream buyers.
• Toward the end of the quarter, the NPG Price Index began to decline as feedstock costs eased and purchasing activity slowed, particularly from sectors like construction and coatings.
• Disruptions from severe weather, including flooding and power outages, further constrained construction-related demand, contributing to sustained downward pressure on the Price Index.
Why did the price of Neopentyl Glycol change in July 2025 in the US?
• The price of NPG in North America began to decline in July 2025 due to persistent weakness in demand from both domestic and international markets.
• Ample availability of feedstock formaldehyde kept production costs low and manufacturing stable, adding downward pressure on the price index.
• Despite concerns over potential supply chain disruptions from hurricane activity, inventory levels remained sufficient, maintaining supply stability and contributing to the gradual price decline.
APAC
• The Neopentyl Glycol (NPG) Spot Price in APAC decreased by 1.72% quarter-over-quarter in Q2 2025, reflecting a bearish Price Index.
• The NPG market in China observed a fluctuating trend during the second quarter of 2025, with the Price Index initially rising in April due to strong downstream demand from the paints and coatings segment, supported by a healthy construction sector.
• Despite steady production levels and stable availability of feedstock formaldehyde, tight logistics and persistent port congestion across North and Central China led to inventory accumulation, gradually influencing the Price Index.
• Moving into May, the Price Index experienced softening as downstream demand stabilized and macroeconomic indicators, including declining new order indexes and export orders, pointed to broader market weakness.
• By June, the Price Index continued to decline, driven by weak consumption from end-use sectors like construction and automotive, alongside easing input costs of isobutyraldehyde and formaldehyde.
• Throughout the quarter, the supply side remained consistently well-stocked, while demand failed to show significant recovery, keeping the Price Index under persistent downward pressure in the Chinese domestic market.
Why did the price of Neopentyl Glycol change in July 2025 in APAC?
• The price of NPG in APAC began declining in July 2025 due to a narrowed gap between supply and demand, with supply outpacing modest demand recovery.
• Domestic production continued at healthy levels, supported by stable feedstock formaldehyde availability and lower production costs, which added downward pressure on the price.
• International demand remained subdued, while domestic consumption showed signs of improvement but remained below expectations.
Europe
• The Neopentyl Glycol (NPG) Spot Price in Europe increased by 6.18% quarter-over-quarter in Q2 2025, reflecting a bullish Price Index.
• During the second quarter of 2025, the price index of NPG in the German market displayed a largely stable to slightly declining trend, influenced by a balance between supply and demand.
• Feedstock formaldehyde costs remained steady throughout the quarter, offering consistent production cost support and preventing major pricing volatility.
• Early in the quarter, the German construction sector showed minor signs of recovery, but overall demand remained weak due to high interest rates and continued inflationary pressure.
• Despite seasonal expectations, domestic consumption remained below projections, and international demand stayed moderate, limiting upward momentum in the price index.
• On the supply side, domestic production remained steady, backed by sufficient inventories and healthy feedstock availability, even as port congestion and adverse weather disrupted outbound logistics.
• Later in the quarter, the price index recorded modest declines as subdued downstream activity, especially in the construction sector, persisted, and inventory accumulation increased across the region.
Why did the price of Neopentyl Glycol change in July 2025 in Europe?
• NPG prices in Europe began to decline in July 2025 due to persistent logistical delays at major Northern European ports, including Hamburg and Antwerp, which led to stockpile accumulation and localized oversupply.
• Feedstock formaldehyde prices remained stable, resulting in low production costs and enabling steady manufacturing activity, which added further supply pressure to the market.
• Demand from downstream sectors, particularly construction and industrial coatings, remained inconsistent and generally subdued, limiting market offtake.
For the Quarter Ending March 2025
North America
During Q1 2025, the U.S. Neopentyl Glycol (NPG) market witnessed a consistent upward trajectory in prices, largely attributed to pronounced supply-side disruptions. Prolonged freezing temperatures across key manufacturing regions severely impacted production activity, leading to operational slowdowns and logistical challenges that constrained overall market availability. These supply limitations were further intensified by OQ Chemicals’ announcement of increased official price quotations for NPG, amplifying upward pricing pressure.
Meanwhile, the import volumes offered little relief, as international shipments were also delayed by persistent logistical bottlenecks. On the demand front, activity from the construction sector—the primary consumer of NPG for coatings and resins—remained modest yet stable.
Notably, U.S. construction spending grew by 2.9% year-on-year in February. Private construction investment rose 0.9%, while residential construction advanced 1.3%, with spending on new single-family housing up 1.0%. This steady demand, combined with tight supply conditions and elevated production costs, contributed to sustained price increases for NPG across the U.S. market throughout the first quarter.
APAC
During Q1 2025, the Asian Neopentyl Glycol (NPG) market displayed divergent pricing trends across key regional markets. In India, NPG prices followed a modest upward trajectory, underpinned by steady demand from the construction sector. The Indian government’s continued capital expenditure on large-scale infrastructure projects—such as highway expansions and railway modernization—supported the consumption of construction-related materials. This indirectly boosted demand for NPG, particularly in the paints and coatings sector, which is a significant downstream consumer. Furthermore, price hikes implemented by major global producer OQ Chemicals added upward pressure on import costs, reinforcing the bullish sentiment in the Indian market. In contrast, the Chinese NPG market remained largely stable throughout the quarter. Market participants reported steady inquiry levels with no significant fluctuations in buying activity. Domestic supply conditions were adequate, which helped keep prices relatively unchanged. Overall, while India experienced firming prices supported by external and infrastructure-driven factors, the Chinese market maintained a balanced position amid stable demand and sufficient availability.
Europe
During the first quarter of 2025, the European Neopentyl Glycol (NPG) market exhibited notable price fluctuations, with Germany standing out as one of the most impacted countries. In the initial phase of the quarter, prices experienced a decline, largely attributed to weak demand from the construction sector, a key downstream consumer of NPG. The German construction industry, in particular, faced ongoing challenges such as high financing costs, labor shortages, and bureaucratic inefficiencies. These factors significantly hindered construction activity, leading to reduced consumption of construction-related materials, including NPG, especially in applications like paints and coatings. However, as the quarter progressed, market conditions shifted, and NPG prices began to rise. The upward trend was supported by global price hikes initiated by OQ Chemicals, a major producer of NPG. These price adjustments increased the cost of imported NPG, exerting additional pressure on domestic pricing. As a result, the European NPG market saw a firming in prices in the latter part of the quarter, despite persistent headwinds from the construction sector.
For the Quarter Ending December 2024
North America
The North American Neopentyl Glycol (NPG) market experienced a notable price surge during the final quarter of 2024. This upward price movement can be attributed to a combination of factors, including a shortage of domestically produced material and strong demand from the downstream paints and coatings industry.
In the initial months of the quarter, production in the region was hampered by adverse weather conditions, including hurricanes and heavy downpours, which led to frequent power outages and disruptions. However, as the quarter progressed, the supply situation began to ease, allowing for a stabilization in production levels.
On the demand side, purchasing activity from the downstream construction sector remained relatively modest. Data from the U.S. construction market revealed a 0% change in construction spending in November 2024 compared to the previous month, following an increase in October. This subdued demand from construction, combined with supply constraints, contributed to the price surge in the NPG market, though growth was tempered by slower expansion in certain sectors.
Asia-Pacific
The Asian NeoPentyl Glycol (NPG) market experienced bearish price trends during the final quarter of 2024, primarily driven by oversupply in the Chinese market. Surplus availability of NPG was exacerbated by global port congestion and ongoing trade uncertainties, creating downward pressure on prices. While demand for NPG remained moderately steady, consumption from the paints and coatings sector, a key end-user industry, exhibited mixed performance, limiting market recovery. China's economic growth in 2024 stood at 5%, meeting government targets. However, this growth was uneven, as many citizens reported declining living standards, reflecting Beijing's challenges in distributing industrial and export gains to domestic consumers. Real estate sector data indicated some stabilization, with December's 70-city property price index showing slower declines in home prices. New home prices dropped by 0.08%, and existing home prices decreased by 0.31%, marking the fourth consecutive month of moderated declines. Despite these encouraging signals, the sluggish real estate recovery limited a broader rebound in NPG demand, further contributing to gloomy market sentiments.
Europe
The European NeoPentyl Glycol (NPG) market remained stable with only minor fluctuations during the final quarter of 2024. Demand from the key downstream construction sector remained subdued, particularly as Germany, one of Europe's largest construction markets, experienced a deeper downturn in October, November, and December. This downturn was reflected in a decline in both activity and new orders, driven by broader economic pressures and reduced investment in construction projects across the region. The muted demand from the construction industry contributed to the lack of upward momentum in NPG prices, which remained relatively stable throughout the quarter. Market participants reported that construction activity in December 2024 faced significant challenges. Despite slight increases in some construction activity indexes, they remained well below growth levels, marking several months of contraction. Housing activity saw its sharpest decline since September, while the commercial and civil engineering sectors showed slower but still negative growth. Germany and France continued to face difficulties, with France reporting its most significant contraction since April, leading to notable job cuts in the sector.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the Neopentyl Glycol (NPG) pricing landscape in North America experienced a notable upward trajectory, particularly in the USA, where significant price fluctuations were observed. Several influential factors contributed to this increase in market prices. Supply shortages stemming from weather-related disruptions, including hurricanes and storms, significantly impacted manufacturing activities, resulting in material scarcities and subsequent price surges.
In the USA, substantial price changes have been closely tied to strong demand from the construction sector, which has fueled the momentum of NPG prices. The limited cost pressure from stable feedstock prices has allowed the demand-supply imbalance to become the primary driver of these price hikes. Quarter-on-quarter analysis reveals a notable 3% price increase, highlighting a consistent uptrend in pricing dynamics.
As the quarter came to a close, the latest quarter-ending price for Neopentyl Glycol FOB Louisiana in the USA stood at USD 2,360/MT, signifying a robust and steadily increasing pricing environment throughout Q3 2024 and reflecting strong market fundamentals.
APAC
In the third quarter of 2024, the Neopentyl Glycol (NPG) market in the APAC region demonstrated an upward trend. Initially, the Chinese NPG market saw a notable price surge due to rising crude oil costs, NPG shortages, and robust demand from the paints and coatings sector. However, prices declined in the week ending July largely driven by falling prices of key raw materials like formaldehyde and crude oil, which reduced production rates and led to lower NPG prices. This decline was exacerbated by unfavourable weather conditions, particularly Typhoon Gaemi, which hampered construction activities and limited NPG demand. By the end of September, the market experienced a sharp price surge following a previous period of stagnation. Despite stable formaldehyde prices, a supply-demand imbalance, driven by strong interest from the downstream paints and coatings industry, significantly influenced the upward pricing trend in the Chinese NPG market. Moreover, the quarter-on-quarter analysis reveals a notable 8% price increase, highlighting a consistent uptrend in pricing dynamics. As Q3 2024 drew to a close, the latest quarter-ending price for Neopentyl Glycol FOB Qingdao in the China stood at USD 1500/MT, signifying a robust and steadily increasing pricing environment throughout the quarter.
Europe
In Q3 2024, the European Neopentyl Glycol (NPG) market experienced a notable decline in prices, driven by several key factors that influenced the overall market sentiment. The quarter was characterized by subdued demand, resulting in significant downward pressure on prices. Ample inventories of both domestically produced and imported NPG contributed to the price slump, as the narrowing supply-demand gap exacerbated the oversupply situation. Weak demand from the domestic construction sector, which continued to struggle with a downturn in new building projects throughout the year, further impacted prices. Stable prices of essential feedstocks like Formaldehyde and Crude Oil played a crucial role in limiting potential price increases, reinforcing the negative pricing environment. Germany saw significant price fluctuations, reflecting broader trends across the region. The quarter-on-quarter change of -1% highlighted the ongoing decline in NPG prices. By the end of Q3 2024, NPG was priced at USD 1,915 per metric ton, FOB Hamburg, emphasizing the challenging market conditions that characterized the region during this period.
FAQs
1. What are the primary industrial applications of Neopentyl Glycol?
Neopentyl Glycol is widely used in the production of polyester resins, coatings, plasticizers, lubricants, and synthetic oils. It enhances durability and chemical resistance in end-use products, especially in automotive, construction, and electronics sectors.
2. How does Neopentyl Glycol improve the performance of coatings and resins?
NPG contributes to excellent thermal stability, weather resistance, and hydrolytic stability in coatings and resins. Its molecular structure prevents polymer degradation, making finished products more resistant to heat, moisture, and UV exposure.
3. What are the main feedstocks used in the production of Neopentyl Glycol?
The primary feedstocks for NPG production are formaldehyde and isobutyraldehyde. These react through an aldol condensation process followed by hydrogenation to produce Neopentyl Glycol.
4. Is Neopentyl Glycol considered environmentally friendly in end-use products?
NPG is valued for its low volatility and ability to produce low-VOC (volatile organic compound) formulations, particularly in coatings and adhesives. This contributes to more environmentally sustainable products, although the full environmental impact depends on the production and lifecycle conditions.
It is usually transported in sealed drums or bulk containers, with safety measures and hazard labels due to its chemical properties.
