The price of Pentaerythritol (PENT) continued to showcase bullish sentiment in the European market as producers again raised their quotations by 2.2% at the beginning of April 2024. The demand for PENT was consistent among buyers, followed by a decrease in the Eurozone's monthly inflation rate by 2.4% in March 2024 compared to the previous month. Meanwhile, PENT supply rates were moderately low due to an affliction in operating rates at manufacturing units. Sources indicated that the Eurozone's Manufacturing Purchasing Manager's Index declined again in March 2024 and remained below 50, indicating a further slowdown in manufacturing sector activities.

The Inquiries for PENT increased from insecticide producers due to heightened demand from the horticulture sector. Simultaneously, PENT inquiries from Polyol makers remained consistent from the end-user Automotive sector as the automotive sales volume experienced a rise in the country over the past month, while Tesla commenced production of right-hand drive cars in Germany to cater to Indian buyers. This increase in sales correspondingly boosted car production and spurred demand for Polyurethane components, which is crucial in manufacturing automobile parts. Meanwhile, the food sector demand for PENT declined due to stabilized consumer orders after the Easter festival in the country.

Concurrently, the market experienced feeble availability of PENT stocks due to challenges in production. One of the significant factors that caused affliction in the production rates of PENT was the decline in skilled foreign labor due to rising racial tensions in the country, which impacted operating rates at manufacturing units. Numerous prominent firms in Germany and the Netherlands have raised concerns regarding recruitment challenges attributed to anti-immigrant sentiment. Some employers have gone on record stating that they are experiencing employee attrition directly linked to this sentiment. Meanwhile, global freight costs eased as most container traffic began avoiding the Suez Canal route, and stabilized operations, resulting in a continued decrease in ocean rates across major trade lanes. On the other hand, global air cargo market demand rose for the third consecutive month in March due to the ongoing expansion of e-commerce and shipping disruptions resulting from incidents in the Red Sea, impacting air freight rates and product supplies within the market.

Conclusively, in the first half of April 2024, Pentaerythritol (PENT) FOB Hamburg prices witnessed USD 1720/MT.

As per the estimation, the PENT offtakes may reduce in the food sector due to sluggish consumption during Q2 of 2024. The inventory levels may improve in the market with the decline in the offtakes, and producers may reduce their PENT quotations in the European market. Furthermore, the production rates will improve, and production costs may decline due to anticipated decreases in Formaldehyde feedstock prices.