The global NPG market remained volatile during the first week of March 2025, with prices increasing in the western market however remained stagnant in the Asian market. The current increase in the west is driven by increased price quotation by one of the major manufacturers. Meanwhile, modest demand from the downstream sector also exerted upward pressure on NPG prices.

In the North American market, NPG experienced a potential inclination during the inaugural week of March 2025, mirroring the trend followed during the previous week. The price of essential feedstock Formaldehyde was also increasing during the same period of time prompting towards increased production cost thus exerting upward pressure on NPG pricing. This price surge is attributed to a series of factors including widened disparity between demand and supply and price increase by one of the major NPG manufacturers. OQ Chemicals will increase prices for the following products effective Mar. 1, 2025, or as contracts allow. Further, on the demand front, purchasing activity for NPG from the prominent end-user construction market owing to its strong performance and anticipated summer season demand. Insights gathered from various market participants indicate that the U.S. construction labor market in February 2025 experienced strong demand but faced a persistent labor shortage. Meanwhile, the supply situation of NPG remained stable with a smooth influx of cargoes to cater to the end-user needs.

On the other hand, the NPG prices in the Asian market experienced a phase of stagnancy during the review period, despite of modest performance from the prominent end-user construction sector. These traders are currently anticipating a potential shift in demand from the downstream construction market in the future thus they have decided to keep the prices stable in order to attract more orders. This optimistic outlook occurred after the Union Budget. During this Budget it was announced that the Indian government has decided to double its investment in construction related projects, fueling up the demand for key chemicals like Neopentyl Glycol (NPG) used in paints and coatings for the construction sector. Further, India's real estate sector also showcased an optimistic trend, with expectations of continued growth in the forthcoming months, driven by urbanization, technological advancements, and evolving consumer preferences.

According to ChemAnalyst, it is anticipated that the prices may increase in the forthcoming months owing to modest demand growth.  The         Summer season usually drives up construction activity exerting upward pressure on commodities used for construction activities like NPG.