Pentaerythritol Demand Faces Challenges in European region during Early 2025
- 29-Jan-2025 5:30 PM
- Journalist: Conrad Beissel
The Pentaerythritol price trend showcased a bearish movement in the European region during the prime month of 2024. In early 2025, demand for Pentaerythritol from alkyd resin manufacturers in Europe remained low due to strategic shifts by companies like AkzoNobel and BASF, focusing on high-growth areas such as automotive coatings. Meanwhile, the demand for Pentaerythritol in the cosmetics sector remained stable, driven by strong sales of premium products, especially in Northern Europe. On the contrary, production costs have risen due to increased energy prices and higher feedstock costs, while logistical disruptions at major European ports have further strained supply chains.
Amid economic challenges and strategic transformations in Europe's paints and coatings sector, orders for Pentaerythritol from alkyd resin manufacturers have been low to produce paints & coatings. Companies like AkzoNobel, BASF, and Hempel are implementing cost-cutting measures and divestments to enhance operational efficiency and focus on high-growth areas, such as automotive coatings. These efforts, aimed at maintaining competitiveness and profitability, have led to moderated demand for Pentaerythritol. With rising energy costs and fluctuating market conditions, manufacturers are adjusting their production strategies, contributing to the reduced demand for Pentaerythritol in this sector.
Meanwhile, Pentaerythritol's demand for humectants in cosmetics remained stable, driven by premium product growth and online sales. The European cosmetics and personal care sector saw mixed performance in December 2024, with niche product segments like beauty advent calendars performing well. The ongoing shift towards online retail and the focus on holiday promotions are expected to drive steady demand for Pentaerythritol in the creation of high-quality, moisture-enhancing formulations. However, manufacturers will need to adapt to rising production costs and stricter sustainability regulations while maintaining consumer interest in innovative, effective cosmetic offerings.
Concurrently, Eurozone manufacturing production continued to decline in January 2025. Pentaerythritol production remained stable, supported by moderate availability of feedstock Formaldehyde, and a rise in energy costs. Simultaneously, the cost support for Pentaerythritol increased due to higher upstream Methanol prices and rising input costs driven by strong demand during the winter season. Additionally, supply chains in Europe were disrupted by congestion at key ports such as Rotterdam, Antwerp, and Hamburg, where increased yard density, coupled with weather-related delays, hindered smooth deliveries. These logistical issues have contributed to ongoing supply chain difficulties for Pentaerythritol in the region.
As we move into mid-Q1 2025, Pentaerythritol orders are expected to increase, driven by a rise in procurement activities across key sectors. At the same time, Pentaerythritol production costs are anticipated to face upward pressure due to persistently firm energy prices. At the same time, supply availability is likely to remain constrained, with the market continuing to experience limited stock levels. These factors could contribute to a tighter supply-demand balance, potentially affecting pricing and delivery timelines for Pentaerythritol in the coming months.