USA Pentaerythritol market remains sluggish as Demand Slumps Amid slow purchasing offtakes

For the past few weeks, the Pentaerythritol price trend was stagnant in the USA as producers were remain hesitant to change their quotations amid moderate demand and supply dynamics. The availability of stocks was adequate in the market amid moderate production rates. At the same time, the supplies were delayed to importers due to supply chain disruption and increased ship traffic at ship routes amid drought at the Panama Canal and increased ship traffic on the Suez Canal. At that time, the Pentaerythritol stocking activities were also firm from the buyers amid affliction in global supply chain activities. Moreover, the cost support remained stagnant from the feedstock Formaldehyde amid sufficient availability of supplies and stable demand from end-user industries.

As per the sources, in February 2024, the USA's manufacturing Purchasing Manager's Index increased and remained above 50 due to an escalation in new orders, production, and output rates in the country, indicating further improvement in the manufacturing sector activities. The Pentaerythritol orders remained firm from domestic buyers amid consistent consumption of food thickeners from the food sector amid a rise in food demand in the country. Simultaneously, the inquiries for Pentaerythritol were consistent from lubricants and paint industries amid increased activities in the regional manufacturing sector. Additionally, inquiries remained moderate from the Pharma Sector.

However, during the last days of February 2024, the Pentaerythritol prices decreased, and the price trend showcased the bearish movement due to an increase in the product stocks in the regional market. The inquiries continued to remain feeble from domestic insecticide and pesticide manufacturers in the regional and international markets due to low consumption rates in the agriculture and horticulture sectors. Simultaneously, orders for Pentaerythritol were sluggish from Polyester manufacturers in the textile sector amid sluggish demand for end products due to the off-season.

Simultaneously, the production costs of Pentaerythritol eased as the cost support fell from the feedstock Formaldehyde due to decreased offtakes and moderate cost support from upstream Methanol.

According to the ChemAnalyst data sources, at the end of February 2024, the Pentaerythritol (PENT) FOB Texas prices assembled at USD 1930/MT.

As per the estimation, the Pentaerythritol price trend will continue to showcase bearish movement till the end of quarter 1 of 2024. The demand will continue to remain low until the arrival of the spring season in the region as the orders for Pentaerythritol increase from Polyester and agrochemical industries with the increase in temperature. Furthermore, the demand for paint is likely to remain moderate for paint thickeners with the shifting consumption rates from the end-user construction sector.