Bearish Market Sentiment Drives Down US Pentaerythritol Prices

The Pentaerythritol price showcased the bearish trend in the US market during the first half of November 2023. The prices declined almost 5% over the month amid improved inventory levels as the market continued to showcase pessimistic sentiments.

The orders for Pentaerythritol for paint swelling agents in the market remained sluggish, and inquiries from the paint sector remained low. The orders from the paint manufacturers were stable due to the moderate consumption rates from the regional downstream industries. On the contrary, orders were feeble from plasticizers and ink producers. Moreover, as winter approaches, Pentaerythritol consumption rates in the insecticide industries have diminished due to reduced application rates in the agriculture and horticulture sectors.

As per the sources, the USA manufacturing Purchasing Manager's Index remained stable during October 2023, indicating neither expansion nor contraction in the manufacturing sector activities. Consequently, the operating rates remained moderate in the region. However, the factory inventory levels of Pentaerythritol increased in the country as the shipping activities remained low for the importers. As per the sources, the Mississippi River water levels have reduced noticeably, and logistics companies have imposed restrictions on Mississippi River shipments.

At the same time, the Pentaerythritol key feedstock Formaldehyde prices witnessed deductions during the month amid an improvement in inventory levels due to weak export rates because of restrictions on shipments through the Mississippi River. It improved the feedstock availability during the month and reduced the upstream cost support on the production costs of Pentaerythritol.

Meanwhile, the Pentaerythritol quotations remained stagnant during the second half of November 2023 as the market prepared for Thanksgiving and Black Friday sales. According to the latest statistics, the Black Friday sale over the past week indicated a rise in the sales index by 2.5% from the last year. Furthermore, the buyers' procurement activities remained average before winter's arrival.

According to the ChemAnalyst database, the Pentaerythritol prices in the US hovered at USD 2000/MT at the end of the fourth week of November 2023.

As per the assessment, the Pentaerythritol price trend will likely remain firm towards the ending month of the year 2023. The demand for paint swelling agents will flourish during winter. At the same time, the feedstock Formaldehyde prices will increase in the upcoming weeks due to the limited availability of upstream Methanol amid the high demand for fuels during winter. It will impact the production rates, and the operating rates will remain moderate during winter. Consequently, the Pentaerythritol supplies will remain tight in the market.