Hamburg, Germany- In December 2023, the Pentaerythritol price witnessed a decrease of almost 8% in the European market when compared with the previous month. The Pentaerythritol inventories were excessively available in the regional market amid reduced offtakes and procurement activities from the end-user industries. The Eurozone Purchasing Manager's Index has consistently demolished in the past few months. As per the sources, Eurozone's manufacturing Purchasing Manager's Index decreased again in November 2023 and remained below 50 due to the decline in new orders and buying activities from the buyers, indicating a subsequent contraction in the manufacturing sector activities. With the drop in the regional PMI index, the operating rates remained low in the manufacturing units, and Pentaerythritol supply rates remained moderate to the market.

The demand for Pentaerythritol were underwhelming from buyers amid reduced consumption rates of synthetic lubricants and paint swelling agents from the paint industries. With the declining temperature in the Northern Hemisphere, inquiries fell from the insecticide producers due to reduced consumption in the agriculture and horticulture sectors. Simultaneously, the depressed demand for Polyester fibres in the winter from consumer end negatively impacted the offtakes from the Polyol industries and improved the inventory levels in the regional market. Furthermore, the orders were for Pentaerythritol low from ink and plasticizers industries.

At the same time, the import quotations of Pentaerythritol prime feedstock Formaldehyde decreased in the regional market amid improved availability due to sluggish offtakes and reduced consumption rates from the disinfectants and adhesive manufacturers. Simultaneously, decline in the upstream Methanol costs amid ease in upstream Coal prices negatively impacted the upstream cost support. It negatively impacted the production costs of Pentaerythritol.

According to the ChemAnalyst data sources, the Pentaerythritol (PENT) FOB Hamburg discussions in Germany witnessed at USD 1320/MT in the concluding week of the year 2023.

As per the assessment, the Pentaerythritol market will remain on the softer side at the beginning of the first quarter of 2023 as demand will decline will remain low for paint swelling agents and from plasticizer manufacturers during winter. The Pentaerythritol offtakes are already depressing from the insecticides and Polyester Polyol manufacturers due to reduced consumption from end users because of decreasing temperatures in Northern Hemisphere during winter. The Pentaerythritol supplies will be adequately available to the regional market. Furthermore, the market momentum in the feedstock market is also weak, so the availability of feedstock supplies will be firm, which will negatively impact production costs and market prices of the Pentaerythritol.