For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American Neopentyl Glycol (NPG) market witnessed a diverse pricing landscape, shaped by various influential factors. Overall, the pricing trajectory for NPG in the region leaned towards a bearish trend. Notably, there was a notable decline of 1.7% in January 2024, primarily driven by decreased demand from the downstream construction sector.
Furthermore, subdued purchasing activity during the winter holiday season further contributed to the downward pressure on prices. This adjustment was supported by improved supply conditions and a more balanced interaction between demand and supply dynamics. An overall decline in prices was observed when comparing the quarterly performance to the corresponding quarter of the previous year.
Throughout the quarter, seasonal patterns were evident, with a decrease in demand during the winter holiday period. Nonetheless, signs of market stabilization and gradual recovery emerged as the quarter progressed. Notably, the quarter-ending Free on Board (FOB) price in the USA was recorded at USD 2200/Mt at the Louisiana port, reflecting the latest market dynamics and pricing trends.
APAC
In the first quarter of 2024, Neopentyl Glycol (NPG) pricing in the APAC region exhibited a consistent decrease during the initial two months, influenced by various factors impacting market dynamics. Primarily, the weakened demand for NPG across sectors such as coatings and construction played a pivotal role in driving prices downward. The construction sector, particularly in China, experienced significant declines in demand, contributing to the overall price reduction. Insights gathered from market participants highlight the frailty of property investment and declining construction activity as key drivers behind the diminished demand for NPG. China, being a focal point in the region, witnessed substantial price fluctuations, with the construction sector's downturn significantly affecting NPG demand. The real estate sector, previously a major contributor to China's economic activity, entered its third year of crisis, further exacerbating the situation. According to the International Monetary Fund, the decline in new construction projects by 60% compared to pre-Covid-19 levels significantly impacted NPG demand, given its crucial role in construction paints and coatings. However, a noteworthy development occurred in March 2024, as the Chinese NPG market experienced a swift rebound, marked by a 0.8% increase attributed to moderate demand. This rebound signals a potential shift in market dynamics and hints at possible recovery in demand within the construction sector.
Europe
In the first quarter of 2024, Neopentyl Glycol (NPG) pricing in the European region demonstrated a consistent increase during the initial two months, driven by various factors shaping market dynamics. Notably, robust demand for NPG across sectors such as coatings and construction played a significant role in driving prices upwards. Additionally, disruptions in ocean routes adversely impacted international trading activities, contributing further to the price surge. Furthermore, demand from importing nations remained strong, bolstering market dynamics. However, as March approached, prices experienced a dip due to weakened client demand, particularly evident in the German construction sector. Market uncertainty and elevated interest rates influenced the ongoing decline in the German construction industry, resulting in reduced purchasing activity and downsizing by construction firms. Consequently, demand for NPG saw a decrease during this period. It is noteworthy that the quarter-ending Free on Board (FOB) price in Germany was recorded at USD 2030/Mt at the Hamburg port, reflecting the latest market dynamics and pricing trends. This figure provides insight into the prevailing market conditions and the evolving pricing landscape in the European NPG market.
For the Quarter Ending December 2023
North America
In the initial month of the fourth quarter of 2023, the North American Neopentyl Glycol (NPG) market witnessed a modest 0.9% increase, followed by a substantial decline in prices.
October 2023 brought about various influences on the market, notably the anticipated rise in upstream Crude Oil prices, contributing to heightened production costs for NPG. However, the NPG market in North America subsequently experienced a downturn in November 2023 marked by surplus material availability, trade uncertainties, and a weakened performance in the construction sector. Despite facing elevated borrowing costs, the construction spending sector in the USA maintained stability, while the manufacturing sector encountered persistent challenges. Insights from market participants indicated a 0.7% decline in spending on public construction projects, following a 1.3% increase in October.
State and local government spending decreased by 0.5%, and expenditures on federal government projects plummeted by 3.1%. Further, Persistent bottlenecks in the Panama Canal, exacerbated by prolonged drought conditions, led to delayed shipments and lengthy queues. Additionally, attacks in the Red Sea, a major trade route, further intensified the situation, driving ocean freight rates to higher levels. In response to the recent attack, Maersk announced the rerouting of vessels away from Red Sea routes, opting for navigation around Africa's Cape of Good Hope, significantly increasing tonne-miles. These developments resulted in a multifaceted challenge for global trade, causing a surge in inventories at ports. The intricate interplay of these factors contributed to a narrowed gap between demand and supply, consequently supporting the downturn in prices.
APAC
The Neopentyl Glycol (NPG) market in the Asia-Pacific region displayed a varied trend throughout the quarter concluding in December 2023. While prices exhibited an initial upswing in the first month of the quarter, they subsequently underwent a decline. In October 2023, the NPG market demonstrated a bullish stance characterized by stable supply and moderate demand. However, manufacturing units in the northern part of the region faced challenges, primarily stemming from the impact of the Beijing conference. The northern region experienced transportation restrictions, leading to a decrease in load for most manufacturers. As the quarter progressed, the NPG market shifted to a bearish stance, marked by average downstream demand and notably undervalued prices. Faced with the imperative to expedite shipments, holders of NPG engaged in negotiations for actual orders and extended discounts to navigate the challenging market conditions. The focus on trading diminished, with reports indicating prices falling below the lower threshold. In the new trading cycle, the NPG market reflected a pronounced bearish sentiment influenced by cautious traders and heightened pressure from downstream entry. Some suppliers, maintaining a firm stance, participated in negotiations at lower market levels, contributing to the overall downward trajectory.
Europe
Throughout the fourth quarter concluding in December 2023, the European Neopentyl Glycol (NPG) market experienced mixed sentiments. Substantial price declines of 5% and 5.7% were witnessed in the initial and final months of the quarter, respectively, indicative of a narrowed equilibrium between demand and supply. Notably, the absence of fresh orders from the downstream construction sector during a week underscored the notable impact of reduced economic activities, primarily influenced by inflationary pressures across the region. Further, the persistent lack of indications for a revival in downstream construction demand for NPG remained significant for several weeks into the quarter, attributed to a substantial decrease in new construction projects. In the broader economic context, the eurozone Construction PMI Total Activity Index, reported by Hamburg Commercial Bank (HCOB), registered at 43.4 in November, reflecting a slight improvement from October's ten-month low of 42.7. This marginal uptick in the index suggests a challenging environment for the construction sector, aligning with the observed decreased demand for NPG. As economic conditions continue to shape market dynamics, stakeholders in the NPG industry may need to adapt strategies to navigate the ongoing challenges in the construction sector. However, a marginal surge in NPG prices was observed during November 2023 due to a contraction in the manufacturing sector, resulting in supply shortages during this period.
For the Quarter Ending September 2023
North America
During the third quarter of 2023, Neopentyl Glycol (NPG) prices in the North American market exhibited a trend of relative stability, with only minor price fluctuations occurring within a narrow range. Prices experienced slight increases over the course of the quarter, primarily driven by tight supply conditions and a global upturn in upstream crude oil prices. However, the demand for NPG from the paints and coatings industry, a major downstream sector, showed a moderate pace of growth. This price uptick can be attributed to a modest improvement in the downstream construction industry. In August, several US companies reported a slower expansion in their output, with economic activity nearly stagnant across the private sector. The manufacturing sector, in particular, saw a decline in production, while service providers experienced a slowdown in their growth rate, reaching its lowest level since February. Further, in September 2023, production activities in various parts of the country were disrupted due to a storm that impacted the Gulf Coast and Florida, contributing to the prevailing market conditions.
APAC
In the Asian NPG market, there was an initial decline in the first month by 4.4% of the third quarter quarter, followed by a significant and noteworthy increase of 5.8% throughout the quarter. In July, prices dropped due to reduced demand from the construction industry and a decrease in the cost of upstream Benzene in the regional market. However, international supplies were readily available at lower import prices, partly due to the favorable performance of the Chinese Yuan against the US dollar. The resumption of production in China increased product availability, leading market players to make sales with narrow profit margins and gradually regain market momentum, even as inventory levels remained high. Conversely, prices experienced a substantial increase in August 2023, and this upward trend continued through September. This price surge was primarily driven by a tight supply situation within the country, rising upstream crude oil prices, and strong demand from the international market, particularly from India, thanks to the robust performance of the downstream paints and coatings sector. In September, labor shortages were observed, with many production units operating at reduced capacity due to mid-autumn holidays in the country. The combination of these factors widened the gap between demand and supply, further supporting the price increase. Moreover, data released by the National Bureau of Labor and Statistics indicated that the new order index remained relatively stable, with a marginal increase from 50.2 in August 2023 to 50.5 in September 2023, suggesting a consistent level of consumption of goods.
Europe
In the European Neopentyl Glycol (NPG) market, the third quarter of the current year witnessed an initial decline in the first month, followed by a significant and remarkable increase over the subsequent months. In July, prices dipped due to reduced demand from the construction industry and a decrease in the cost of upstream Benzene in the regional market. Conversely, prices experienced a substantial increase in August 2023, and this upward trend continued through September. The price surge was primarily fuelled by a tight supply situation within the country, escalating upstream crude oil prices, and a robust demand from the international market, driven by the strong performance of the downstream paints and coatings sector. In addition, the holiday season in August 2023 led to labor shortages and reduced manufacturing activities within the region, further impacting the market dynamics. Demand from the downstream paints and coatings was moderately paced during this time period. Further, the growing inflationary pressure and hiked interest rate also contributed to the current price trend.
For the Quarter Ending June 2023
North America
Neo Pentyl Glycol prices experienced a downturn in the second quarter of 2023 in the wake of declining demand from the downstream automotive and construction sector. Growing inflationary pressure and global economic slowdown have weakened the buying enthusiasm of consumers from the construction sector. However, demand from the automotive sector was still moderate during this timeframe. In an effort to curb inflation, the government has raised interest rates high. This has further made consumers reluctant in making bulk purchases. Additionally, the collapse of two major banks in the US has further, influenced the prevailing price trend. However, as the second quarter approaches its end a surge in prices of Neo Pentyl Glycol was witnessed. This surge can be majorly attributed to revived demand from the construction sector. As per the data from the US Census Board the privately owned housing starts by the end of May were 21.7% above the revised April estimate and is following the same trend in June. Further, the fluctuating price trend of upstream Crude Oil in the country has impacted the production rate and consequently influenced the prices. Additionally, as per data from FRED, the Purchasing Managers Index of the country has depreciated throughout the second quarter. However, the Consumer Price Index of the country rose by a margin of 0.3% in June from the previous month. Overall, mixed sentiments prevailed for NPG throughout this quarter in the USA market.
APAC
Pessimistic market sentiments for Neo Pentyl Glycol prevailed throughout the second quarter of 2023. After a significant decline of 9.7% during this quarter the prices settled at USD 1380/MT in June. The ley factors attributing to the decline were decreasing prices of raw materials and depreciating demand from the end-user segment. The construction and automotive sector a significant consumer of Neo pentyl Glycol faced sluggish demand from buyers during this period. The construction sector has been experiencing a downturn since the beginning of this quarter due to the weaker-than-expected property sector in the country. Additionally, amidst the growing inflationary pressure and global economic slowdown government was forced to raise interest rates high. This further weakened the buying enthusiasm of bulk consumers. However, demand from the automotive sector was observed stable during this period despite growing inflation in the region. The lack of procurement orders from exporting countries particularly South Korea further impacted the prevailing price trend. This coupled with the surplus availability of the material in the market supported the narrowing demand-supply fundamentals of the product. Additionally, as indicated by the National Bureau of Statistics China, the Purchasing Manager Index is declining and has been recorded at 48.8 in May 2023 after a marginal decline of 0.8% from the previous month along with a decrease in industrial growth rate from 5.6 in April 2023 to 3.5 in May 2023. These economic indicators hinted towards reduced economic activity, potentially affecting NPG demand.
Europe
The prices of Neo Pentyl Glycol declined throughout the second quarter of 2023 in the German market. The key driving factors attributing towards this decline were declining prices of raw material and depreciating demand from the downstream industries. Growing inflationary pressure and global economic slowdown have further influenced the prevailing price trend. However, as per data inflation has slumped down from 6.1% in May 2023 to 5.8% in June 2023 but is still above the average level. Thus, in an effort to curb inflation further, the European Central Bank has raised interest rates high in the region. This has further weakened the buying enthusiasm and made consumers reluctant in making bulk purchases. Further, as per data from Eurostat the Producers Price Index of the region has declined to 138.3 in May from 143.4 in March. The average decline was 3.6%. Further, as per data from German Federal Statistical Office the Consumer Price Index of Germany declined by 0.1% in May. Overall, the market situation for NPG remained bearish during this quarter with enough number of stocks available in the market to cater to the end user needs. This coupled with depreciating demand paved the way for narrowed demand supply fundamentals in the country.
For the Quarter Ending March 2023
North America
Throughout the USA, the price of Neopentyl Glycol has been fluctuating throughout the first quarter of 2023. Due to sluggish orders from the construction and automobile industries, the price leveled out in January. Following the flattening of the price trend, the product's demand marginally increased, and the makers reported a high price trend in the US market. As overseas client demand conditions remained historically poor, new export orders declined for ten straight months at the end of the first quarter. Participants in the market claim that the US market has seen a decline in new orders and that demand from the downstream construction sector (paints and coatings) has been poor to stable.
APAC
The price of Neopentyl Glycol showed a mixed trend in the Asian market throughout the first Quarter of 2023. After the Lunar holidays, the cost of Neopentyl Glycol saw an upward tick due to high inquiries, and the price of feedstock Isobutyraldehyde rose in the Chinese market. Additionally, global financial conditions have improved as inflationary pressures have begun to ease. On the other hand, in India, the cost of NPG soared sharply in January due to the limited availability in the market. In February, the traders said that there was a lot of inventory from other Asian countries and little cargo prices that were imported for the Indian market. However, the traders were able to supply the downstream industries with sufficient goods. The prolonged burden of high freight costs has significantly eased down globally, as freight and shipping costs fell significantly in March 2023. Oversupply, decreased demand, and moderate economic activity have all been cited as reasons for the drop in shipping and freight costs.
Europe
The price of Neopentyl Glycol fell in Europe throughout the first Quarter of 2023 due to consistent supply and sufficient availability in the market. In addition, the latest indication that Europe has avoided the dreaded energy crisis is that natural gas prices have fallen to their lowest level in years. Benchmark Gas prices also fell to their lowest level ever because there were a lot of products to choose from in the area, and fewer people were buying heating equipment and power generation equipment. While the global economy's sluggish performance dampens German exports, high inflation rates dampen consumer spending and construction activity by reducing purchasing power and significantly increasing financing costs.
For the Quarter Ending December 2022
North America
Throughout the fourth quarter of 2022, the Neopentyl Glycol market in the United States experienced a downward trend. The global market was stagnant in Q4, orders from the overseas markets declined, and the product got stockpiled. The low demand from the downstream paints & coatings and construction sectors was exacerbated by high inflation and high-interest rates in the USA. According to the players in the market, the majority of the purchases were based on demand. The holiday approached in the last month of Q4, further decreasing demand and orders from buyers. In addition, in the face of inflation, domestic consumers tended to wait and buy.
APAC
During the fourth quarter of 2022, the price of Neopentyl Glycol decreased in Asia. The interest from the downstream business was a low and bountiful stockpile of the item in the field, declining the expense of Neopentyl Glycol. The upstream Isobutyraldehyde market fell, the cost support weakened in the Chinese market, and demand from the coating industry saw declined trend throughout the quarter. The government imposed the zero COVID restriction in China during Q4, which affected the trading activities in the domestic and overseas markets. The cost of Neopentyl Glycol hovered around USD 1349/MT on a FOB Qingdao basis during December 2022.
Europe
Due to weak market sentiment, the price trend of Neopentyl Glycol declined throughout quarter 4 of 2022. Due to high inflation and a declining buying trend in the European market, end-use industries had little demand. The production costs eased marginally as a result of falling natural gas prices in the market because of the ample storage of gas in major EU nations. Due to low demand from the end-use industries, several enterprises slowed down their production rates, but the availability of the product was abundant. As the holidays got closer, producers offered to destock their products at a low price at the end of the quarter.
For the Quarter Ending September 2022
North America
During the third Quarter of 2022, Neopentyl Glycol's price declined in the North American region. The weak-cost pressure from the feedstock Isobutyraldehyde influenced the market of Neopentyl glycol. Low demand from importing countries like Brazil, Chile, and India has participated in this negative price trend. Despite high inflation, the prices dropped for several reasons, including weaker demand, adequate product availability, and WTI crude oil prices declining below USD 100 per barrel globally. The poor demand from the downstream coating and adhesive industries also contributed to the negative price trend in the market. The cost of Neopentyl settled at USD 2677/MT on a FOB Louisiana during September.
APAC
During the third Quarter of 2022, the cost of Neopentyl Glycol fell in the Asian market due to weak cost pressure from feedstock Isobutyraldehyde. The poor demand from the downstream coating, adhesives, and other key driving sectors in the Asian market constrained the price of Neopentyl Glycol. In terms of supply, the steady supply from the manufacturers and adequate product availability was observed in the market. The orders from consumers decreased due to a stagnant buying trend in the Asian market. The operational cost to produce the product was low due to the cheap crude oil price imported from Russia. The price of Neopentyl Glycol was settled at USD 1586/MT on a FOB Qingdao basis during September 2022.
Europe
In Europe, the price trend of Neopentyl Glycol observed a downward trajectory throughout the third Quarter of 2022. The consumer orders declined due to the region's high energy values. Further, domestic production costs remain elevated amid mounting energy and operating costs, resulting in weak output rates. Though, speculation of recession across Europe has dampened the demand. The trading of Neopentyl Glycol in the European region remains limited due to brisk product availability and increased production costs. The consumers were reluctant to purchase the product due to the impending recession in the region. The price of Neopentyl Glycol hovered around USD 2475/MT on a FOB Hamburg basis during September 2022.
For the Quarter Ending June 2022
North America
The Neopentyl Glycol (NPG) process was persistently observed to move upwards in the second quarter of 2022. The volatility in the crude oil prices in the region influenced the downstream commodities. The upstream isobutyraldehyde prices were also raised due to the crude oil and natural gas surge. BASF has revised the prices of Neopentyl Glycol in the North and South America region due to the increases in raw material costs. Demand from downstream paints & coatings, adhesives, and other driving sectors increased the prices of Neopentyl Glycol. The eastern Europe war-related impacts affected the US market. The Neopentyl Glycol was settled at the end of the quarter, USD 3637/MT on a FOB Louisiana basis.
Asia Pacific
In the second quarter of 2022, the Neopentyl Glycol price rose persistently since the first quarter of 2022. Saudi Arabia increased the cost of exporting crude oil to the Asian countries at the end of the second quarter. In China, the supply chain is observing hindrances due to the COVID-related uncertainties, resulting in fluctuations in the producers’ quotations within a narrow range. Increasing demand for Neopentyl Glycol from the construction and automotive industries drives the APAC market. The cost pressure from upstream isobutyraldehyde affects the downstream industries in the region. The price of Neopentyl Glycol was recorded at INR 248040/MT on an Ex-Mumbai basis and USD 2600/MT on a FOB-Qingdao basis during the end of the second quarter.
Europe
In Europe, Neopentyl Glycol witnessed an upward trend during the second quarter of 2022. The uncertainty in the crude oil prices and the conflicts between Russia and Ukraine affected the petrochemical markets in the region. The sturdy stance of the Russian authorities on trading the Ruble (Russian currency) has put pressure on supply disruptions to stable demand in the local market. Demand from downstream industries like paints and coatings further increases the prices of Neopentyl Glycol in the region. The cost of Neopentyl Glycol was recorded at USD 3025/MT on a FOB Hamburg basis during the end of the second quarter.
For the Quarter Ending March 2022
North America
In Q1 2022, North America saw an increase in Neopentyl Glycol (NPG) prices due to volatility in the crude oil market, which has been affected by the Russia-Ukraine war. Feedstock propylene and isobutyraldehyde prices also increased with soaring crude and Natural Gas prices. The surge in demand for downstream paints and coatings, dyes, and fillers and the stoppage of all businesses between Russia and the USA following the conflict caused the prices to become firmer. An increase of 13.2% in Neopentyl Glycol in Q1 was seen in the USA as compared to the prices of the last quarter, which cover up all the costs, including high freight rates and other shipment charges increasing up to USD 3011/ton FOB Louisiana
Asia Pacific
In Q1 2022, there was an increase in Neopentyl Glycol (NPG) price to USD 2580/ton FOB-Qingdao at the end of the quarter in China, owing to a change of 3.8% as compared to the last quarter. The freight charges also went up high in Japan and South Korea due to the ongoing war between Russia and Ukraine. Stable demand from downstream industries soared upstream value and inadequate availability in the global market. A steep hike in international prices allowed traders to increase their profitability by raising their offers. Many production units increased their offers to sustain their margin, as input cost impacted their profitability.
Europe
Neopentyl Glycol (NPG) prices were observed to move upwards in the first quarter of 2022 with a beginning of USD 2390/ton and increased to USD 2610/ton FOB Hamburg on the back of rising demand from the domestic and international market coupled with input cost. On comparing the prices of Q1 of 2022 and Q4 of 2021, a surge of 2.6% was observed. Domestic manufacturers quoted the unavailability of the raw materials for another couple of weeks while asked about exports to Asia. High crude oil and surging feedstock values put global inflationary pressure on market sentiment. The rise in offtakes from the regional paints and coating sector is the reason for consistent price hikes.
For the Quarter Ending December 2021
North America
In North America, the Neopentyl Glycol (NPG) market witnessed a downward trend backed by the ample availability and stable to narrow demand from the downstream Paints and Coatings, Automotive, and Construction during the fourth quarter of 2021. Further, relaxation in the feedstock Formaldehyde prices also contributed to the drop in values of Neopentyl Glycol (NPG) during this timeframe. However, NPG prices attained marginal gains of USD 40/ MT from October to November but in December, a steep decline in NPG prices was observed backed by lull trade activities and lower buying momentum due to year end. Hence, Neopentyl Glycol FOB Louisiana prices were assessed at USD 2610/MT showcasing a significant fall of around 5% since October.
Asia Pacific
In Q4 2021, the Asian Neopentyl Glycol (NPG) market witnessed mixed prospectus varied from country to country. In India, surplus supply and stable to narrow demand impacted the prices of Neopentyl Glycol (NPG). Thus, in the Indian market, the prices of Neopentyl Glycol (NPG) witnessed a downward trend in this quarter backed by the sufficient supplies and lower offtakes from the downstream Paints and Coatings and Construction sector. Neopentyl Glycol (99%) Ex Mumbai monthly average prices stood at USD 8461.39 per MT in December witnessed an uprise of USD 4947.71 per MT since October.
Europe
In Europe, Neopentyl Glycol market witnessed an uptrend during the third quarter of 2021 backed by the constraint availability of the product and improvement in the demand from the downstream manufacturers. Delayed imports from China led to the scarcity of the feedstock in the region that consequently fumed the prices of Neopentyl Glycol (NPG). Firm offers of feedstock Formaldehyde and lower production levels due to energy crisis kept the NPG prices high in this quarter. Hence, Neopentyl Glycol FOB Hamburg prices stood at USD 2095/MT in December.
For the Quarter Ending September 2021
North America
During the third quarter of 2021, the market of NPG demonstrated an uptrend in the North American region. FOB Texas price for NPG rose from $1890/mt early in July to $2010/mt at the closure of the month. As per market players, there was an increment in the demand from the downstream base resins and coating industries owing to the increased consumption from the building and construction sector. BASF, the world's largest petrochemical company increased the prices of NPG in the region. Eastman has also announced to increase the NPG prices in North America with effect from October 01, 2021.
Asia Pacific
The market of Neo-Pentyl Glycol witnessed an upward trajectory in the Asia Pacific region backed by the consistent demand from the downstream manufacturers in Q3 of 2021. In China, the prices of NPG rose effectively throughout the quarter due to the unexpected and unprecedented power supply crunch that forced factories to cut production and placed more strain on the global supply chain. Power shortages have also hit the southern province of Guangdong which is a major industrial and shipping hub in China. In India, after gaining a significant value last month, a marginal increase in the NPG pricing was observed in August. The prices rose from USD 2585 to USD 2929 per MT from July to September.
Europe
The supply outlook of Neo-Pentyl Glycol improved in the European market during the third quarter of 2021. Demand remained strong from the downstream paints and coatings industry. OQ Chemicals and Perstop AG announced to increase the prices for Neopentyl Glycol (NPG) during the quarter to the strong demand and increasing raw material costs across the region. In Germany, the pricing of NPG was last assessed at USD 2105/MT FOB Hamburg during September.
For the Quarter Ending June 2021
North America
Even though supply of Neopentyl Glycol (NPG) improved significantly from the previous quarter, market outlook remained constraint due to the limited production activities of NPG. As a repercussion, OQ Chemical hiked the prices of NPG by USD 220 per tonne June. Demand surged from base resins and coating industries due to the increased consumption from the building and construction sector. Whereas the offtakes from the automotive sector remained hampered due to the slumped automotive production. As a ripple effect of supply demand imbalance coupled with cost support of the upstream, prices of NPG observed surged with FOB Texas discussions reaching USD 1770 per tonne in June.
Asia Pacific
In the Asia Pacific region, the supply remained tight during the second quarter of 2021 due to planned turnarounds. However, the situation improved in the second half with resumption of production in several facilities. Demand showcased mixed trends and varied in different parts in the region. In India, due to the resurgence of Covid, market activities slumped which reduced the domestic consumption of NPG as the wait and see approach strengthened in the first half of the quarter. Whereas the offtakes remained consistent in the Chinese market amidst the increased constructional activities.
Europe
The supply outlook of NPG in the European market was extremely constraint in the second quarter of 2021, owing to the limited availability of key upstream products which kept the production rates lower in the first half of the quarter. A major producer OQ chemical ended its prolonged turnaround in May which eased the supplies by certain margins. Thus, Perstorp hiked the prices of NPG by USD 356 per tonne and the overall pricing trend remained sturdy in the second quarter of 2021.
For the Quarter Ending March 2021
North America
In Q1 2021, the supplies of Neopentyl Glycol (NPG) were constrained in the North American region, due to the limited availability of upstream products, as a result of the rigorous freeze weather conditions which hit the US Gulf region in mid-February, halting production at several producing belts throughout the region. A leading producer cited surged demand and sharp gains on the raw material front as key drivers of the uptrend. However, demand remained healthy due to the constant offtakes from the downstream coatings sector. BASF in March announce increase in the prices of Neopentyl Glycol by USD 600/ton, adding on to the increases during last quarter.
Asia-Pacific (APAC)
The Neopentyl Glycol market in Asia Pacific region was balanced to tight during the first quarter of 2021. Spot buyers started to replenish their inventories in early March after the plant outages during the Chinese Lunar New Year holidays in the northeast Asian region. The demand surge from the paints and coatings sector after the COVID vaccine rollout in the region improved the activities and offtakes. Surging raw material and global inflation in NPG rates further raised the cost pressure over regional buyers.
Europe
Supply of Neopentyl Glycol in the European region was tight during the first quarter of 2021, owing to the force majeure declared by the BASF plant in Germany, due to gas leakage issues which halted the production levels for indefinite period. The market tightness was exacerbated by skyrocketing shipping freight throughout the quarter. Demand from the downstream paints and coating sector surged from the automotive sector while buyers maintained a firm stance due to the lockdown imposed in several parts of European region.
For the Quarter Ending December 2020
North America
North America witnessed speedy recovery in demand from industrial as well as from domestic sector during overall fourth quarter of 2020. The demand for NPG showcased significant improvements although the supply remained tight due to the force majeure declared on several plants under spate of hurricanes in the Gulf Coast in Q4 2020. As per our sources, BASF slightly increased its NPG prices in North America region by 0.08 USD per tonne in November 2020.
Asia
Asian countries had great recovery from COVID 19 during Q4 2020, which surged the demand of NPG from various downstream industries. Amid healthy demand, supply remained low due to shortage of feedstock Formaldehyde across the region. In India, several formaldehyde plants in North India were forced shut down due to environmental clearance issues. Consequently, feedstock Formaldehyde prices climbed from INR 147.5 USD per tonne in October to 205.1 USD per tonne in December. China also faced huge shortage of feedstock Formaldehyde due to lower imports of upstream methanol from Iran which consequently impacted PEG prices in China.
Europe
European countries were significantly affected by rapid spread of new COVID 19, due to the partial lockdown imposed across several parts in the region. Amid improvement in demand from domestic market, reduced Formaldehyde supply supported its prices across the region. In addition, Equinor’s major Methanol fire accident created huge shortage of upstream Methanol thereby impacting the prices of downstream derivatives like Neopentyl Glycol in Europe. Besides BASF, was heard increasing their NPG prices two times within a quarter in Europe amidst the sturdy demand and supply shortage.
