On August 12, 2026, BASF officially announced price increases for Neopentyl Glycol (Neol®) and 1,6-Hexanediol (HDO) products in the European market. The price adjustments are effective immediately, while existing contracts will be executed according to the original terms.

This time, the price of Neopentyl Glycol has been increased by 250 Euros per ton, and 1,6-Hexanediol by 300 Euros per ton.

BASF stated that this price adjustment stems from changes in the global supply and demand landscape as well as the continuous rise in raw material costs. The company also stated that the adjustment is a necessary measure to ensure the continuous supply of high-quality products and stable supporting services to the market, and to support the business growth of downstream customers.

BASF Product Overview, Capacity, and Market Layout

Neopentyl Glycol (trade name Neol®, abbreviated as NPG) is an important polyol intermediate, widely used downstream in coatings polyester resins, unsaturated polyesters, lubricants, plasticizers, and other fields; 1,6-Hexanediol (HDO) focuses on the high-end materials sector, suitable for low-VOC industrial coatings, polyurethanes, adhesives, cosmetic raw materials, and can also be used as an epoxy resin reactive diluent, applied in the manufacturing of lightweight automotive parts.

In terms of capacity layout, BASF is a global leading producer of Neopentyl Glycol, with production bases distributed across Europe, North America, and the Asia-Pacific region. With the commissioning of the 80,000 tons/year Neopentyl Glycol unit at the Zhanjiang Integrated Base, BASF’s total global capacity for Neopentyl Glycol has reached 335,000 tons/year; The Ludwig site in Europe serves as its core supply hub, long meeting the needs of the local European coatings and resin industries.

In the field of 1,6-Hexanediol, BASF’s European facilities are a core regional supply source, and together with Covestro’s related capacity, constitute the main supply of HDO in Europe. The products target European high-end polyurethane, eco-friendly coatings, and automotive materials customers. Relying on the advantages of the integrated industrial chain, BASF’s Neol® and HDO hold a stable market share in the European high-end polyester and eco-friendly coatings markets.

Following the implementation of this price adjustment, the benchmark spot transaction prices for BASF’s Neopentyl Glycol and 1,6-Hexanediol in the European market have risen simultaneously, putting upstream pressure on the raw material procurement costs of European downstream coatings and polyurethane enterprises.

Major Domestic Manufacturers, Capacity, and Market Conditions

Neopentyl Glycol (NPG) Domestic Market

The domestic Neopentyl Glycol industry has completed a shift in landscape, with the share of foreign capital continuing to decline, and domestic enterprises occupying a dominant position.

Core Production Enterprises: Wanhua Chemical is the largest domestic producer, with existing Neopentyl Glycol capacity of approximately 180,000 tons/year;

Hualu Hengsheng, Binzhou Yukai, Ningxia Baichuan, Satellite Petrochemical, and Daqing Sanli are mainstream domestic manufacturers, in addition to supporting facilities at Luxi Chemical, Ma’anshan Haijian, etc.

It is worth noting that BASF withdrew from the BASF-Jilin Chemical Neopentyl Glycol joint venture project in the first half of 2026, divesting this legacy 35,000-ton unit in China.

In terms of price, as mid-August 2026, mainstream market quotes for domestic industrial-grade Neopentyl Glycol were concentrated in the range of 8,900-9,100 Yuan/ton, with the market operating fluctuating in line with raw materials. Domestic products mainly supply the domestic polyester coatings and unsaturated resin markets, with a small amount exported to Southeast Asia.

1,6-Hexanediol (HDO) Domestic Market

The production of 1,6-Hexanediol possesses high technical barriers, and domestic effective capacity is concentrated among leading enterprises.

Core Production Enterprises: Wanhua Chemical is the domestic HDO leader, possessing a capacity of 32,000 tons/year;

Jiangsu Yida, Yuanli Chemical, Yangnong Chemical, Shandong Runxing, and other enterprises have supporting related capacity.

For a long time, European imports of HDO from BASF and Covestro have occupied the domestic high-end market share, and domestic products have gradually achieved import substitution in recent years.

In terms of market conditions, the domestic market price for high-purity grade 1,6-Hexanediol is significantly higher than that of Neopentyl Glycol, and a product price spread has long existed; high-end automotive coatings and polyurethane raw materials still partially rely on imported sources, and this round of price increases in Europe may indirectly affect expectations for the landed price of imported HDO in China.

Brief Analysis of Market Impact

As Europe is a gathering place for the global high-end coatings and polyurethane industries, BASF’s price increase for these two polyols will transmit to the cost side of European local resin and coatings manufacturers in the short term. In the long run, rising prices for international sources are expected to support offshore export price quotes for similar domestic products.

Industry insiders analyze that the market conditions for polyol products continue to be constrained by the prices of upstream aldehyde and olefin raw materials, combined with fluctuations in the operation of facilities in different global regions. The subsequent price trends for Neopentyl Glycol and 1,6-Hexanediol still require continuous tracking of raw material costs, facility maintenance at home and abroad, and the recovery of downstream demand.

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