China's NPG Market Maintains Uptrend Amid Tight Supply in December 2025, with Prices Near Five-Year Lows

In December 2025, China's Neopentyl Glycol (NPG) market continues its upward trajectory amid tight supply conditions, though overall prices still linger near a five-year low. The high price of isobutyraldehyde, NPG's key feedstock, provides robust cost support, underpinning firm NPG quotations. Currently, manufacturers' prices remain stable, while some face tight spot supply availability, and the market generally anticipates further price increases in the near term.

1. Market Summary

New order quotations from Wanhua Chemical, a major player in the market, remain stable, with the East China market price standing at 7,500 RMB/mt. Spot supply in the overall NPG market stays tight, prompting producers to maintain firm offers for new orders. Meanwhile, the price of feedstock isobutyraldehyde is in a consolidation phase, ensuring that cost support for NPG remains effective.

2. Spot Market Overview

The East China NPG market traded in a consolidated range on the latest trading day. Suppliers maintained a firm stance on new order pricing, keeping quotes at relatively high levels. On the demand side, downstream buying interest was muted, with purchases primarily driven by essential operational needs, leading to the market's high-level consolidation trend.

Price Table (RMB/mt, Delivered on Acceptance)

• Disproportionation Method NPG: Negotiated prices range from 6,900 to 7,100 RMB/mt.

• Hydrogenation Method NPG: Negotiated prices range from 6,900 to 7,100 RMB/mt.

Notably, these prices remained unchanged compared to December 12th.

3. Production Dynamics

Some previously idled NPG production units are scheduled to restart this week, which is expected to drive up the overall industry operating rate. However, spot supply is still anticipated to remain tight in the short term. Currently, the industry's capacity utilization rate is approximately 66%, with spot supply described as normal.

Following recent rebounds, both NPG prices and feedstock isobutyraldehyde prices have stabilized, resulting in reduced volatility in production cost pressure for manufacturers.

4. Price Forecast & Related Market Trends

NPG Forecast for Tomorrow: The market is expected to remain in a consolidation phase. On the supportive side, firm feedstock costs and persistently relatively tight supply (despite the planned restart of some units) will underpin prices. However, growth momentum will be constrained by weak downstream buying interest and limited acceptance of high prices.

Shandong Formaldehyde Market: As a related upstream material, the Shandong formaldehyde market currently ranges between 930 - 1,020 RMB/mt (ex-works, cash). The market is in a consolidation state, with good buying interest and smooth transaction activity.

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