European Pentaerythritol Prices Remain Bearish Amid Sluggish Offtakes and Ample Supply

In Europe, the Pentaerythritol market sentiments remained bearish from consumers, and producers decreased their quotations due to sluggish offtakes and firm availability of supplies in the region. The average price of Pentaerythritol decreased by almost 12% during September 2023.

The availability of previous Pentaerythritol stocks was adequate in the market due to a decline in export and consumption rates during the last month. Furthermore, the offtakes remained low from the domestic buyers during September as the consumption rates for Di Pentaerythritol significantly reduced in downstream Polyether and Polyurethane film industries due to sluggish activities in the manufacturing sector. Simultaneously, the sluggish offtakes from insecticide manufacturers. It negatively impacted the demand from end-user buyers.

In August, the retail sector sales index fell by 0.8% on a month-on-month basis, negatively impacting the September month orders in the manufacturing sector amid high inflation. Consequently, the Eurozone manufacturing sector Purchasing Manager’s Index dropped again during September 2023. The manufacturing activities remained low and negatively impacted the offtakes from the downstream buyers during the regional summer holidays. Furthermore, the importers declined their orders for Pentaerythritol due to reduced demand from herbicides and insecticides manufacturers. Meanwhile, inquiries were moderate from the paint sector.

Moreover, the unplanned plant shutdown activities at Mider Helm in Leuna, with an upstream Methanol production capacity of 800,000 MTPA, on 23rd August 2023, affected the domestic feedstock Formaldehyde availability rates during August. Meanwhile, exporters notably decreased their upstream Methanol quotations amid firm availability due to a decline in purchasing activities from international buyers. It reduced the Pentaerythritol production costs noticeably during the month.

As per the ChemAnalayst data sources, the Pentaerythritol prices witnessed a noticeable fall during the second half of September and hovered at USD 1750/MT in Germany at the end of the month.

As per the Analyst assessment, the Pentaerythritol market will improve during the final quarter of 2023 because of the estimated improvement in demand for Mono Pentaerythritol from the paint and coatings manufacturers for paint swelling purposes. Also, the consumption of Di Pentaerythritol will increase from the manufacturing sector to produce Polyether polyurethane films, and offtakes will improve moderately from downstream industries and end-users. Simultaneously, the feedstock Formaldehyde prices will remain firm due to increased upstream Methanol prices amid increased demand for fuels during winter. Furthermore, the input prices will rise during the mid-quarter due to the escalation in Natural Gas futures by Dutch TTF. It will raise the production costs of Pentaerythritol during Q4 of 2023.