Neopentyl Glycol (NPG) Prices: During the Quarter Ending December 2023
North America
During the initial month of the fourth quarter of 2023, the Neopentyl Glycol (NPG) market in North America saw a modest 0.9% increase, followed by a significant price decline. In October 2023, various factors influenced the market, including the expected rise in Crude Oil prices upstream, leading to increased production costs for NPG. However, November 2023 witnessed a downturn marked by surplus material availability, trade uncertainties, and weakened performance in the construction sector. Despite elevated borrowing costs, stability was maintained in the USA’s construction spending sector, while manufacturing 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 federal government project expenditures plummeted by 3.1%. Persistent bottlenecks in the Panama Canal, worsened by prolonged drought conditions, resulted in delayed shipments and lengthy queues. Additionally, attacks in the Red Sea intensified the situation, driving ocean freight rates higher. 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 posed a multifaceted challenge for global trade, causing a surge in inventories at ports. The interplay of these factors contributed to a narrowed gap between demand and supply, supporting the downturn in prices.
Get Real Time Prices of Neopentyl Glycol (NPG): https://www.chemanalyst.com/Pricing-data/neopentyl-glycol-npg-1194
APAC
The Neopentyl Glycol (NPG) market in the Asia-Pacific region displayed a varied trend throughout the quarter concluding in December 2023. While prices initially rose in the first month of the quarter, they subsequently declined. In October 2023, the NPG market showed a bullish stance with stable supply and moderate demand. However, manufacturing units in the northern part of the region faced challenges, primarily due to the impact of the Beijing conference, leading to transportation restrictions and decreased load for most manufacturers. As the quarter progressed, the market shifted to a bearish stance, with average downstream demand and notably undervalued prices. To expedite shipments, NPG holders engaged in negotiations for actual orders and extended discounts. The focus on trading diminished, with 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 maintained a firm stance, participating 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, indicating a narrowed equilibrium between demand and supply. The absence of fresh orders from the downstream construction sector during a week underscored the impact of reduced economic activities, 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.
Get Real Time Prices of Neopentyl Glycol (NPG): https://www.chemanalyst.com/Pricing-data/neopentyl-glycol-npg-1194
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