In early May 2024, the price trend of Pentaerythritol showed an upward movement, registering a 1.7% increase, signaling a rise driven by sustained demand outpacing supply. Availability of Pentaerythritol remained limited due to reduced trading volumes and moderate production rates in the market. Manufacturing facilities operated at optimum capacity amid a moderate supply of feedstock Formaldehyde. The cost support for Pentaerythritol increased as prices escalated in the competitive international market of North America. Additionally, European exports declined in April 2024.

The orders for Pentaerythritol were firm from downstream industries. The inflation rate in the Euro Zone stayed constant at 2.4% in April 2024, aligning with both market expectations and preliminary estimates. Furthermore, during its April meeting, the European Central Bank kept interest rates at record-high levels for the fifth consecutive time. The refinancing operations rate remained unchanged at a 22-year high of 4.5%, while the deposit facility rate continued to hold at a record 4%.

Pentaerythritol inquiries rose from paint manufacturers. Southern Europe, Eastern Europe, and the UK regions demonstrated high volume performance in Paints and Coatings segments and witnessed growth, with Paints benefiting from significant volume growth propelled by SESA and Coatings driven 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. AkzoNobel experienced a 2% increase in organic sales driven by a 2% uptick in volumes despite a 1% decline in revenue.  At the same time, Pentaerythritol'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 percent to USD 1.1 billion in the first quarter of 2024, with a 15 percent decrease in sales across Europe, Africa, and the Middle East. Additionally, field crop sales in Europe saw a 5 percent decline. In Europe, the company introduced the first barley hybrid resistant to Barley Yellow Dwarf Virus, offering farmers a solution to control the disease without requiring Neonic seed treatments.

Conclusively, Pentaerythritol (PENT) FOB Hamburg prices settled at USD 1750/MT at the end of the second week of May 2024.

As per the estimation, the Pentaerythritol prices will decline during the upcoming weeks in the European region. The Pentaerythritol offtakes may stabilize from paint and coating manufacturers, and inventory levels will improve with the decline in offtakes. At the same time, the anticipated improvement in feedstock availability and production rates of Pentaerythritol will keep the inventory levels firm in the regional market.