In the first half of February 2025, Neopentyl Glycol (NPG) prices experienced a moderate increase across Western markets, primarily due to strategic price hikes by major producers. Concurrently, supply-side constraints emerged, particularly in North America, where severe winter storms led to operational disruptions in the petrochemical sector. These adverse weather conditions caused "freeze-offs," temporarily halting oil and gas production and tightening NPG supply. Additionally, logistical challenges, including port congestion, further exacerbated supply issues, collectively contributing to the upward pressure on NPG prices during this period.

In the European market, NPG prices edged higher during the initial half of January 2025, following a phase of stagnation. This upward trend was initiated by OQ Chemicals' announcement on January 24, 2025, of a price increase effective February 1, 2025, for products including NPG, due to supply and demand factors as well as increased raw material costs. Subsequently, smaller traders adjusted their pricing strategies to maintain margins. While feedstock Formaldehyde prices remained stable, its impact on NPG pricing remained limited. Further, supply constraints emerged due to logistical challenges and extended delivery lead times for construction-related inputs. Regional elections led to disruptions in the supply chain, notably in Berlin, where public transport halted as workers went on strike ahead of German elections. Despite these supply-side challenges, demand remained muted, particularly from the construction sector, which continued to contract, albeit at a slower pace. Germany's construction industry was notably weak, burdened by high inflation, rising material costs, and declining new orders.

Similarly, In the North American market, NPG prices continued their upward trajectory, influenced by OQ Chemicals' price hike and incremental increases from Perstorp. While raw material Formaldehyde availability remained stable, adverse weather conditions across key U.S. manufacturing hubs disrupted NPG production. Severe snowstorms and freezing temperatures caused operational slowdowns at petrochemical plants, with reports of pipeline freezing and power grid strain in the U.S. Gulf Coast region. Logistical bottlenecks further exacerbated supply challenges, with transportation delays and chassis shortages affecting key rail hubs. Demand continues to remain steady, particularly from the construction sector, but inflation concerns, and high interest rates limited new project financing, keeping market activity in check.

According to ChemAnalyst, Neopentyl Glycol (NPG) prices are expected to continue their upward trajectory in the coming days, influenced by recent price hikes from major producers. Additionally, the approaching summer season typically stimulates demand from the downstream construction sector, potentially leading to a modest increase in NPG consumption. This anticipated demand surge is expected to further support the current price momentum in the NPG market.