Pentaerythritol Prices Hold Steady in North America in Early May 2024

The Pentaerythritol price trend was observed to be stable in the North American market during first half of May 2024 as producers were not changing their quotations from the past few weeks amid balanced demand-supply dynamics. The market experienced stable demand for Pentaerythritol from paints and coating manufacturers. Sherwin Williams reported stagnant net sales in the Paint Stores Group, while demand for DIY paint in North America remained subdued, offset by international growth within the Consumer Brands Group. Meanwhile, Pentaerythritol supply rates were firm to the importers, and the US Exports rose 7.1% in April compared to March 2024. This increase comes after several months of either declining or stagnant month-on-month changes.

Meanwhile, the operating rates were intermediate at Pentaerythritol manufacturing units, attributed to limited supplies of feedstock Formaldehyde. At the same time, the rise in upstream Methanol costs, driven by an increase in non-discounted reference prices from major producer Methanex, led to an escalation in cost support from feedstock Formaldehyde. In April 2024, the US Manufacturing Purchasing Managers' Index remained stable at 50.0, indicating steady business conditions at the start of the 2024 second quarter.

Adding further, the demand for Pentaerythritol was firm from paint manufacturers. The AkzoNobel Decorative Paints division achieved a 3% organic sales growth during Q1 2024, resulting in a 1% revenue increase, mainly due to a 2% rise in price/mix, driven by favorable pricing in EMEA and LATAM, compensating for competitive pricing in some Asian regions. In the Powder Coating market, organic sales grew by 3%, although revenue slightly declined by 1%, with volume expansion noted across segments and regions, especially in the industrial segment and North America. However, orders for Pentaerythritol were moderately low from agrochemical manufacturers. In the first quarter of 2024, Syngenta Crop Protection North America witnessed a 44% decrease in sales, attributed to customers delaying purchases at the onset of the planting season. In Latin America, sales declined by 1%. Moreover, field crop sales in North America decreased by 7%, while Latin America experienced an 18% drop. Concurrently, ADAMA launched an innovative herbicide solution tailored to control glyphosate-tolerant Palmer amaranth in Nebraska and Colorado, receiving an emergency exemption from the US Environmental Protection Agency due to the pressing demand for an herbicide solution for sugar beet crops.

According to the ChemAnalyst data sources, the Pentaerythritol FOB Texas prices in the USA witnessed USD 1880/MT, at the end of the first half of May 2024.

As per the estimation, the Pentaerythritol prices are likely to decline in the North American market. This reduction may stem from anticipated decreases in formaldehyde prices by the end of Q2 2024, potentially lowering Pentaerythritol production costs. The demand for Pentaerythritol could stabilize among pesticide manufacturers, as consumption rates may decrease within the agrochemical sector during the mid-season in agriculture.