The Europe Pentaerythritol (PENT) market has remained stable in the first half of December 2024. Despite fluctuating market conditions, prices have held steady, providing a sense of predictability for both buyers and sellers. This consistent pricing trend has instilled confidence in the market, making PENT a dependable option for businesses planning their budgets and strategies with minimal price fluctuations.

The demand for PENT used in adhesives and sealants showed mixed trends in November 2024. In the construction sector, subdued activity, driven by economic challenges. The European construction sector faced challenges in November 2024, with the Eurozone’s economic momentum hitting a 10-month low, reflecting contractions in manufacturing and services.

Meanwhile, political instability in France and Germany added uncertainty. Inflation is expected to rise to 2.3% in November 2024. Consequently, subdued construction activity continued due to weak demand, high borrowing costs, and political instability, leaving the sector cautiously optimistic as monetary policy evolves. It further constrained PENT market conditions.

Simultaneously, PENT demand in the Paints & Coatings sector remains subdued, with the European market seeing a 12% volume decline since 2021. Although the contraction has stabilized, growth prospects remain modest, with a 1% recovery expected in 2025. However, the automotive coatings sector, particularly for electric vehicles, stands out as a bright spot, offering potential amid otherwise stagnant demand in construction and industrial segments.

Estimations are that PENT demand for Alkyd Resins is expected to remain moderate in the coming months. The paint and coating industries are likely to see limited demand. This is due to generally weakened activities in the construction and manufacturing sectors during the winter season.

At the same time, PENT production rates were intermediate in the region during November 2024 due to the moderate availability of feedstocks. A storm on November 27, 2024, in the northern part of Germany, caused major disruptions to the railway network. It led to significant congestion and limited access to key seaports. As a result, PENT key feedstock formaldehyde supplies are not adequately available in the European market. Transportation delays have hindered the movement of goods, which caused supply shortages and impacted industries that rely on formaldehyde.

Consequently, the euro area's manufacturing sector activities contracted in November 2024 amid sharper drops in new orders, production, purchasing activity, and inventories. Additionally, rail congestion caused by a storm in the northern region impacted PENT supplies and led to temporary supply constraints, particularly in regions dependent on Germany's port infrastructure. As a result, PENT prices are anticipated to remain firm in the European region at the end of 2024.