During the opening week of 2025, the global NeoPentyl Glycol (NPG) market has shown varied price trends across regions, influenced by demand fluctuations, feedstock stability, and supply chain dynamics. Period of stagnation was reported in the Asian market however occasional price fluctuation have been observed in the western market. The prices increased in USA however declined in Europe largely driven by regional manufacturing adjustments and logistical challenges.

The NPG market in Asia remained stable during the review period, supported by consistent production rates and steady feedstock Formaldehyde prices. However, demand trends for NPG varied across key regions, with the construction sector significantly influencing market dynamics. In China, muted demand of NPG from the construction sector, driven by challenges in the real estate market and slower property sales, led to limited price fluctuations. Excess inventories further constrained price movements. Despite this, port cargo volumes increased by 3.5% in 2024, signalling robust logistical activity. However, global port congestion, exacerbated by adverse weather and labour disruptions during the holiday season, caused shipment delays, impacting supply chains. In India, the construction sector showed mixed performance. Strong demand for premium housing contrasted with subdued overall project activity, reflecting uneven market conditions. Domestic NPG supply effectively met market demand, with stable production levels sustained by steady Formaldehyde availability. Seasonal factors such as adverse weather and labour shortages mildly affected construction activities, though their impact on NPG supply was minimal. Overall, the Asian NPG market maintained equilibrium, driven by balanced supply and demand. While logistical disruptions and regional demand fluctuations posed challenges, efficient production and inventory management helped sustain NPG market stability.

Meanwhile, In Europe, NPG prices declined in the opening week of 2025 due to a narrowed supply-demand scenario. The construction sector continued to underperform, with demand showing no signs of recovery. Efficient manufacturing operations ensured steady supply, but muted demand from key sectors led to price reductions. Logistical bottlenecks, including port congestion on the Asia-Europe trade route, resulted in delayed shipments and inventory buildup, adding to the subdued market environment.

However, NPG prices in North America rose slightly by following a price hike by major producer Perstorp Polyols. Smaller traders aligned their pricing strategies to maintain margins. Domestic demand remained steady, despite seasonal slowdowns in the construction sector. Elevated mortgage rates and a decline in residential real estate activity dampened purchasing activity. However, international demand, particularly from Mexico, provided some support.

According to ChemAnalyst, NPG prices in Asia and the USA are likely to increase in the near future, driven by fluctuations in feedstock costs, a projected recovery in the construction sector, and rising international demand.