Pentaerythritol Prices Surge in Europe Amid Steady Demand and Low Supplies

The Pentaerythritol (PENT) price trend showcased an upward trajectory in the European region during May 2024 as producers raised their quotations by 3.5% amid consistent demand surpassing supply. The PENT market experienced substantial demand from paint manufacturers. Akzonobel experienced a 2% increase in organic sales driven by a 2% uptick in volumes despite a 1% decline in revenue. Meanwhile, the market experienced intermediate availability of stocks, caused by the moderate operating rates at manufacturing facilities primarily attributed to limited supplies of feedstock Formaldehyde and firm offtakes from the buyers and importers. The cost support rose from feedstock Formaldehyde due to the moderate availability of stocks amid consistent purchases from regional buyers and increased prices in the competitive international market of North America. It raised the production costs of PENT.

Simultaneously, there was an increase in inquiries for PENT from paint manufacturers. Southern Europe, Eastern Europe, and the UK regions displayed robust performance in the Paints and Coatings segments, experiencing notable growth. The Paints segment saw substantial volume expansion driven by SESA, while Coatings witnessed growth propelled by Powder products. Additionally, the Decorative Paint market saw a rise in Q1 2024, with organic sales increasing by 5%, attributed mainly to higher pricing, while volumes remained steady.  Simultaneously, PENT's demand to produce insecticides was moderate in the agriculture sector amid the ongoing farmer protest in the region and the planting season of crops, keeping the orders average from international agrochemical manufacturers. ADAMA's sales in Syngenta dropped by 16% to 1.1 billion USD in the first quarter of 2024, with a 15% decrease in sales across Europe, Africa, and the Middle East. However, field crop sales in Europe saw a 5% decline. The company launched the inaugural barley hybrid with resistance to Barley Yellow Dwarf Virus in Europe, providing farmers with a solution for disease control without the need for Neonic seed treatments. However, consumption rates of PENT were sluggish from the Polyurethane foam manufacturers.

According to ChemAnalyst data sources, Pentaerythritol (PENT) FOB Hamburg prices witnessed USD 1780/MT in Germany at the end of May 2024.

Anticipations are that PENT prices might decline in the European market by the end of the second quarter of 2024. It could occur as buyers may reduce their orders, particularly from pesticide manufacturers, due to the mid-season in agriculture, leading to low consumption rates of PENT. Similarly, offtakes may decline from the paints and coatings sector. Furthermore, the production costs of PENT could also decrease, as feedstock Formaldehyde prices are anticipated to decrease towards the end of Q2 2024.