European Neopentyl Glycol Prices Continue to Decline During the End of 2022

The price of Neopentyl Glycol has decreased in Germany in the last few months. The fear of recession and the economic downturn have declined the demand from the downstream industries. Over the past few months, the weak demand from the paints and coatings industries has forced several upstream companies involved in processing Neopentyl Glycol to limit or reduce their production rates. The cost of Neopentyl Glycol will continue to decrease in December 2022.

European natural gas prices are rising today as temperatures fall in the region, which is experiencing an energy crisis. On average, the EU member states have filled more than 90% of their natural gas storages to meet winter demand. According to the source, Europe imported a record-breaking 11.4 MT of LNG in November 2022.

However, demand from downstream industries, such as the paint and coating sectors, is weak due to the current economic downturn and consumers' reluctance to spend on non-essential materials across Europe. One factor supporting the negative market sentiment regarding Neopentyl Glycol is the possibility of a recession. Orders from other countries that import Neopentyl Glycol are also decreasing, and global market sentiments are also stagnant.

The adequate product availability in the European market can meet demand regardless of the price of Neopentyl Glycol because of fewer disruptions in the supply chain and weak market sentiments. Additionally, the region's port congestion is decreasing.

ChemAnalyst found that during the week ending 9^th December 2022, the price of Neopentyl Glycol on a FOB Hamburg basis hovered around USD 2240/MT, representing a 0.4% reduction.

ChemAnalyst predicted that Neopentyl Glycol's price would remain low due to negative market sentiment and weak demand in downstream paints and coatings industries. In addition, manufacturers discounted the costs of their existing stock in December to free up space in the warehouse. Additionally, the region's order may be more susceptible as the holidays approach.