For the Quarter Ending September 2024
North America
In Q3 2024, Pentaerythritol (PENT) pricing in North America experienced a notable increase, influenced by several key factors shaping market dynamics. Stability in demand from various industries, including coatings, plastics, pharmaceuticals, and specialty chemicals, significantly supported the upward price trend. Additionally, improved production capacity and effective supply chain management helped maintain a balanced market, even in the face of rising energy costs and inflationary pressures. The quarter saw a 6% increase from the previous quarter, reflecting positive momentum and resilience despite fluctuating production costs and demand patterns.
In the USA specifically, the market experienced the most significant price fluctuations, with a 9% difference between the first and second halves of the quarter. This trend highlights how responsive prices are to changes in demand-supply dynamics and variations in production costs.
By the end of the quarter, the price for Pentaerythritol (PENT) FOB Texas in the USA was recorded at USD 2,110/MT. This figure underscores the overall positive pricing environment, emphasizing the market's stability and potential for continued growth.
APAC
In Q3 2024, Pentaerythritol (PENT) pricing in the APAC region saw a significant decline, driven by several key factors. The market was affected by stable supply levels, moderate demand, and fluctuations in production costs. Sluggish demand from downstream industries, reduced consumption in key sectors, and stable feedstock prices all contributed to the overall downward trend in prices. Notably, China experienced the most significant price changes, with a consistent decline throughout the quarter. The correlation between price changes and seasonality became evident as the market faced various challenges. When comparing this quarter to the same period last year, prices dropped by 11%, highlighting the ongoing downward trend. Additionally, the quarter-on-quarter change of 5% further emphasized the declining pricing sentiment. In the second half of the quarter, prices experienced a notable decrease of 5%, culminating in a quarter-ending price of USD 1,410/MT for Pentaerythritol FOB-Tianjin in China. This figure reflects a negative pricing environment characterized by continued price reductions.
Europe
Throughout Q3 2024, the pricing environment for Pentaerythritol (PENT) in the European region has been marked by a steady upward trend, driven by several key factors. Stable demand from major industries, such as alkyd resin and plasticizer manufacturers, along with seasonal fluctuations that affected supply dynamics, played significant roles. Additionally, support from feedstock Formaldehyde costs contributed to the overall rise in market prices, reflecting a positive pricing environment. In Germany, the market witnessed the most pronounced price changes, with a 9% increase compared to the same quarter last year and a 5% rise from the previous quarter in 2024. There was also a 4% price difference observed between the first and second halves of the quarter, further illustrating the upward momentum. By the end of the quarter, the price for Pentaerythritol (PENT) FOB Hamburg in Germany reached USD 1,900/MT. This figure underscores the overall positive pricing sentiment prevalent in the region, highlighting the consistent upward trajectory of prices throughout Q3.
MEA
Throughout Q3 2024, Pentaerythritol (PENT) prices in the MEA region exhibited a steady upward trend, indicating a positive pricing environment. Several factors contributed to this increase in market prices during the quarter. Demand from key sectors, including pharmaceuticals, specialty chemicals, and construction, played a significant role in driving prices higher. Additionally, stable supply levels and enhanced logistical infrastructure supported this price growth. The market saw a 4% increase compared to the same quarter last year, reflecting sustained growth, while an 8% rise from the previous quarter in 2024 highlighted the escalating price trend. Furthermore, the 3% price variance between the first and second halves of the quarter demonstrated a consistent increase in prices. In Saudi Arabia, the market experienced the most significant price changes, ending the quarter at USD 1,400/MT for Pentaerythritol FOB Al Jubail. This ongoing price appreciation in the region signifies a robust and stable pricing environment for Pentaerythritol.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Pentaerythritol (PENT) market in the North American region demonstrated stable pricing, supported by a balanced supply and demand. Key factors included steady downstream demand, moderate production rates, and a stable Formaldehyde market despite some fluctuations in Methanol prices. Stable US Federal Reserve interest rates also contributed to a predictable economic environment. Furthermore, towards the end of Q2, the demand for Pentaerythritol for paint manufacturing was firm due to the increased consumption of paints from the construction sector.
In the USA, Pentaerythritol prices dropped 37% compared to the same quarter last year due to post-pandemic market corrections, reduced construction activity, and a shift toward sustainable materials. Compared to the previous quarter, prices decreased by only 1%, reflecting minimal volatility.
The Pentaerythritol prices remained consistent throughout the quarter, with no significant changes between the first and second halves. The quarter-ending price was USD 1880/MT FOB Texas, highlighting a stable pricing environment. Despite economic challenges, the market showed resilience and balance, resulting in steady conditions for Pentaerythritol.
APAC
In Q2 2024, the Pentaerythritol (PENT) market in the Asian region saw significant price increases driven by several key factors. Robust demand, stable consumption from end-user industries, and rising production costs due to higher feedstock prices for Formaldehyde and Methanol were major contributors. Anticipated increased demand for Q3 2024 led to substantial stocking, further pushing up prices. Additionally, elevated natural gas costs amplified production expenses, reinforcing the upward price trend. China experienced the most notable price changes, with firm demand and insufficient supply driving prices higher. Supply constraints were worsened by limited Formaldehyde availability and high Methanol costs. Seasonal demand, particularly from the paint and pesticide sectors, contributed to a 13% price increase from the previous quarter and a 9% rise year-over-year. Prices increased by 7% between the first and second halves of Q2 2024, indicating a steady upward trend. The quarter-ending price for Pentaerythritol FOB-Tianjin in China was USD 1500/MT, reflecting the strong positive pricing environment in Q2 2024. This trend highlights significant growth and price escalation for Pentaerythritol in the APAC region.
Europe
In Q2 2024, Pentaerythritol (PENT) prices in Europe experienced a notable increase due to several key factors. The rise was driven by higher production costs from increased feedstock Formaldehyde prices and elevated upstream natural gas costs. The market saw stable to moderate demand from downstream sectors like adhesives, textiles, and paints, which supported the upward price trend. Balanced supply and demand dynamics also helped maintain a firm market sentiment. In Germany, which saw the most significant price changes, the trend was distinctly bullish. Increased demand for insecticides during the spring and supply chain disruptions from labor shortages contributed to higher prices. Despite a 35% year-over-year decrease reflecting a recovery from previous lows, prices surged by 15% from the first quarter of 2024. A 3% price increase was noted between the first and second halves of Q2, indicating steady growth. The quarter-ending price for Pentaerythritol FOB Hamburg in Germany was USD 1780/MT, reflecting a strong and consistent positive pricing environment throughout Q2 2024.
Middle East
In Q2 2024, the Pentaerythritol (PENT) market in the MEA region saw significant upward prices driven by several key factors. Anticipation of increased demand in Q3 2024 led to higher stocking, pushing prices up. Additionally, robust cost support came from rising feedstock Formaldehyde prices, influenced by increased upstream Methanol and natural gas costs. Regional purchasing activity further bolstered the positive price sentiment, offsetting trade restrictions from major exporters. In Saudi Arabia, price fluctuations were most notable. The market experienced consistent demand from the construction sector and other industries despite global market volatility. Seasonal increases in paint and coating consumption also boosted demand for Pentaerythritol. Prices rose 4% from the previous quarter, reflecting strong demand and strategic inventory management. Year-over-year, prices in Q2 2024 decreased by 27% from the same quarter last year, showing a significant correction from earlier highs. However, prices rose 4% from Q1 2024, with a 3% increase between the first and second halves of Q2, indicating tightening market conditions. By the end of the quarter, Pentaerythritol FOB Al Jubail prices were USD 1350/MT, reflecting a consistently positive pricing environment throughout Q2 2024. Robust demand, strategic purchasing, and strong cost support contributed to this upward trend.
For the Quarter Ending March 2024
North America
The Pentaerythritol (PENT) price trend remain weak in the North American market during the first quarter of 2024. At the beginning of the quarter, prices were dropped by suppliers amid increased inventories in the regional market because of sluggish demand from Polyurethane foam manufacturers as the inquiries d for Polyurethane slightly cooled down in the Automotive industries due to production halts of gas vehicles amid new regulations in the region.
During the mid-quarter, the price trend shifted, and prices inclined due to an escalation in PENT orders for stocking purposes from domestic buyers amid consistent consumption of food thickeners from the food sector amid a rise in food demand in the region.
Towards the end of the quarter, inventory levels rose in the market as ocean rates declined amid the Red Sea crisis, negatively affecting product supplies to importers. PENT orders are low from Polyester fiber producers due to the off-season for the product in the retail sector. Simultaneously, upstream costs rose as Methanex, a leading global distributor and supplier of Methanol, raised its contract prices, which reduced the upstream cost support. Conclusively, at the end of the quarter, Pentaerythritol (PENT) FOB Texas quotations in the USA witnessed USD 1880/MT.
APAC
During the first quarter of 2024, the price trend of Pentaerythritol (PENT) remain weak when compared with the previous quarter. At the beginning of Q1, price remained stable amid limited purchases from buyers and an increase in inventory levels. Meanwhile, productions were hampered amid moderate availability of feedstock supplies and affected the import of upstream Methanol because of a rise in supply chain concerns. Houthi Rebels in Yemen attacked the vessels in the Red Sea, causing an increase in ship traffic and commercial vessels rerouted to the Cape of Good Hope. Consequently, prices increased during the mid-quarter due to affected production and escalated production costs. Demand improved for food thickening agents from the regional food sector, while trading rates were affected by the Lunar New Year holidays in regional producers in China. Towards the end of the quarter, producers raised their quotations as the agrochemical market rebounded with the increase in temperatures in the Northern Hemisphere and increased activities in the agriculture and horticulture sectors, which improved product orders from insecticide manufacturers. Furthermore, the air cargo market experienced increased demand for the third consecutive month in March, driven by e-commerce expansion and shipping disruptions in the Red Sea, impacting air freight rates and product supplies in the international market, which led to increased freight costs. Conclusively, at the end of the first quarter of 2024, Pentaerythritol (PENT) FOB Tianjin quotations in China settled at USD 1330/MT.
Europe
The Pentaerythritol (PENT) prices in Europe remain brisk in the first quarter of 2024 when compared with the previous quarter. Initially, demand was low from agrochemical industries due to sluggish agriculture activities during winter. Simultaneously, inquiries were moderately low for food thickening agents amid a decline in the food sector sales, and producer dropped their quotations. During the mid-quarter, the PENT price trend rebounded as Lufthansa's operations in Germany faced disruptions due to repeated strikes by cargo handlers affiliated with the Verdi Union, leading to low supply rates for international buyers. However, offtakes remained average from buyers for stocking purposes as orders were sluggish from Polyester manufacturers in the textile sector due to low demand for end products amid the off-season. Towards the end of the quarter, a shortage of skilled labor resulting from rising racial tensions in the region disrupted production schedules. Despite this, demand for PENT rose from insecticide manufacturers due to firm stocking practices by farmers before the beginning of planting season in the agriculture sector. Conclusively, Pentaerythritol (PENT) FOB Hamburg quotations in Germany were assessed at USD 1680/MT at the end of the quarter.
MEA
The Pentaerythritol (PENT) prices showcased a bullish trend in the Middle East market during the first quarter of 2024. At the beginning of Q1, prices rose as cost support increased on feedstock Formaldehyde prices due to tight production and average purchasing activities from downstream industries. Meanwhile, supplies got delayed to importers due to supply chain disruptions amidst the ongoing geopolitical tensions in the Middle East and European regions. On the contrary, orders were sluggish from Polyester manufacturers due to the off-season during winter. In the second half of the quarter, the downstream agrochemical market experienced a rebound, driven by increased demand for insecticides from regional horticulture and increased stocking practices by farmers ahead of the planting season in the agriculture sector. Additionally, the energy sector saw a rise in oil prices due to geopolitical tensions and positive economic data. At the same time, the cost support was firm from feedstock Acetaldehyde because of increased prices due to firm demand and stressed availability of supplies in the international markets amid geopolitical tensions. It raised the production costs, and producers raised their quotations. At the end of the first quarter of 2024, Pentaerythritol FOB Al Jubail quotations in Saudi Arabia were assessed at USD 1250/MT at the end of the quarter.
For the Quarter Ending December 2023
North America
The Pentaerythritol price trend showcased bearish in the North American region, and price decreased throughout the quarter in the final quarter of 2023 amid the availability of previous stocks in the market and a decline in demand from end-user industries. Initially, demand was sluggish from the regional buyers amid a decline in restocking practices for the approaching winter season.
At the same time, cost support fell on the feedstock Formaldehyde due to declined offtakes from the downstream industries and reduced production costs of the Pentaerythritol. During the mid-quarter, the consumption rates depressed from insecticide industries due to diminished application rates in the horticulture and agriculture sectors with the decline in Northern Hemisphere temperatures and the arrival of winter. Simultaneously, shipping activities remained low to the market as the Mississippi River water levels have reduced noticeably, and logistics companies issued restrictions on shipments through the Mississippi River. It raised the factory inventory levels.
Towards the end of Q4, market sentiments were underwhelming from the downstream paint sector, and inventory levels increased in the regional market amid delayed shipping activities through the Panama Canal. Conclusively, after witnessing an overall decrease of almost 32% compared to the previous quarter and at the end of the quarter, Pentaerythritol (PENT) FOB Texas prices in the USA hovered at USD 1900/MT.
Asia
The Pentaerythritol (PENT) price trend showcased mixed sentiments in the Asian region during the fourth quarter of 2023. At the beginning of the quarter, demand declined from the paint swelling agents and plasticizer manufacturers during winter, leading to a bearish market situation and moderate supply rates to importers. Meanwhile, offtakes were firm in importing countries like India, and prices increased in the Indian market. During the mid-quarter, production rates remained low in regional producer China, while a decline in transactions and offtakes raised the product inventory levels in the regional market. Towards the end of the quarter, prices decreased in China amid a reduction in upstream costs support from feedstock Formaldehyde due to weak consumption rates from downstream disinfectants and adhesive manufacturers amid cautious buying activities from buyers. On the contrary, prices in importing India rose amid affected shipping activities due to the increase in ship traffic after the Houthi Rebels in Yemen attacked the vessels in the Red Sea and the commercial vessels rerouted to the Cape of Good Hope. Conclusively, at the end of the quarter, the Pentaerythritol FOB-Tianjin quotations in China were assembled at USD 1200/MT.
Europe
Like the North American region, the Pentaerythritol price trend remained bearish in the European region in the final quarter of 2023 as the price decreased consistently throughout the quarter. Primarily, demand was sluggish from the regional buyers. Simultaneously, reduced costs of upstream Methanol reduced the cost support on Pentaerythritol. During the mid-quarter, with the arrival of winter and the decline in Northern Hemisphere temperatures, the consumption rates depressed from insecticide industries due to diminished application rates in the horticulture and agriculture sectors. Simultaneously, orders for PENT were feeble from plasticizers and ink producers. At the end of Q4, the depressed demand for Polyester fibres in the winter from the consumer end negatively impacted the offtakes from the Polyol industries and improved the inventory levels in the regional market. Conclusively, after witnessing an overall decrease of almost 32% compared to the previous quarter and at the end of the quarter, Pentaerythritol (PENT) CFR Antwerp quotations in Belgium hovered at USD 1420/MT.
MEA
Pentaerythritol (PENT) pricing in the MEA region for Q4 2023 remained bearish, and overall prices fell by almost 22% due to several factors. Firstly, the demand for PENT was reduced in downstream industries, such as paint swelling agents and plasticizer manufacturers, leading to a decline in prices. Secondly, the production and supply rates declined as the market situation is uncertain due in the region to the rising tensions between Palestine and Israel war, coupled with a decrease in buying activities from the end-users, negatively impacting prices. Towards the end of the quarter, domestic inventory levels rose as inquiries were low for food-thickening agents amid a rise in food inflation and a decline in the food sector sales index by 1.4% in December 2023. Simultaneously, supplies were affected to the international markets after Houthi Rebels in Yemen attacked the vessels in the Red Sea, causing an increase in ship traffic and commercial vessels rerouted to the Cape of Good Hope. The quarter-ending price of Pentaerythritol FOB Al Jubail in Saudi Arabia is USD 1170/MT.
For the Quarter Ending September 2023
North America
The Pentaerythritol prices showcased bearish movement in the North American region, and prices fell by almost 19% during the Q3 of 2023. Initially, offtakes and demand remained sluggish from downstream ink manufacturers and food-thickening agent producers because of low consumption rates from end-user consumers amid rise in inflation in the region. Simultaneously, hike in bank interest rates by Federal Reserve Bank to cool down the rising inflation negatively impacted the upstream import costs and product demand in the market, causing a slowdown in economic growth of the US region. Meanwhile, the supply rates were affected during the mid-quarter due to affected US shipping and freight routes amid the decline in Mississippi and Ohio river water levels. At that time, offtakes remained sluggish from the market. Towards the end of Q3, prices witnessed a further drop amid decline in offtakes of Mono Pentaerythritol due to decline in demand from surfactants manufacturers because of increased surfactants prices in the market. Simultaneously, demand was low from herbicides and insecticides manufacturers, which raised the inventory levels. Conclusively, at the end of Q3 of 2023 Pentaerythritol prices in the USA witnessed USD 2300/MT.
Asia
Like the North American region, the Pentaerythritol price trend remained bearish in Asia, and prices witnessed a drop of almost 7% during the quarter. At the beginning of the quarter, demand was moderately low from buyers due to a rise in food inflation in the region. It reduced the orders for thickening agents in the food sector. During the mid-quarter, production rates were affected because of shortage of upstream Acetic Acid in the Asian region. Simultaneously, supply rates remained low amid storms and typhoons like Doksuri, Saola and heavy rainfall in the region. At the same time, the demand for Di Pentaerythritol depressed from plasticizer and PU coating manufacturers due to weak activities in the construction sector, and producers marginally decreased their quotations. Towards the end of the quarter, offtakes remained weak from insecticides manufacturers, and buyers declined their orders amid sluggish procurement activities before the Golden week holidays in key regional producer China. At the end of Q3, 2023, Pentaerythritol prices in China hovered at USD 1270/MT.
Europe
Likewise, the previous quarter, the Pentaerythritol price trend remained steady in Europe, and prices decreased by almost 27% during the Q3 of 2023 amid low offtakes due to sluggish manufacturing and purchasing activities from buyers during summer holidays in the region. The high energy prices, and hike in bank interest rates by European bank resulted in a decline in demand from buyers, causing a slowdown in the Eurozone growth. Consequently, the Eurozone manufacturing Purchasing Manager’s Index dropped gradually during the 3rd quarter, indicating contractions in manufacturing sector activities and decline in procurement activities from downstream buyers. Towards the end of the quarter, production costs fell due to decline in feedstock Formaldehyde prices amid noticeable decrease in the upstream Methanol prices from exporters due to a decline in purchasing activities from buyers. Simultaneously, offtakes remained low from buyers and raised the inventory levels. At the end of the quarter, Pentaerythritol prices in the Germany and Belgium hovered at USD 1750/MT and USD 1800/MT, respectively.
Middle East
In the middle east region, the Pentaerythritol prices witnessed a plunge of almost 23% during the Q3 of 2023. Initially, the demand was moderately low from Asian importers due to a rise in food inflation. It reduced the orders for thickening agents in the food sector. Simultaneously, sluggish activities in the agriculture sector negatively impacted insecticide consumption by the farmers. Consequently, inventory levels rose, and producers declined their production rates. During the mid-quarter, supply rates were moderate, but orders remained moderately low from importers. Towards the end of the quarter, the consumption rates for Di Pentaerythritol significantly reduced in downstream Polyether and Polyurethane film industries amid moderate activities in the manufacturing sector. Simultaneously, the Pentaerythritol offtakes remained low from insecticide manufacturers due to reduced demand from agriculture sector amid decline in global temperatures. It raised the inventory levels amid firm production rates in the region. At the end of the quarter, Pentaerythritol prices in the Saudi Arabia witnessed USD 1350/MT.
For the Quarter Ending June 2023
North America
The Pentaerythritol seesawed in the North American region during Q2 of 2023. At the beginning of the quarter, prices contracted amid low inquiries from insecticide and ink manufacturers and raised the domestic inventory levels. Meanwhile, feedstock Formaldehyde prices rose due to the limited availability of supplies. It increased the production costs of Pentaerythritol, and prices surged during the mid-quarter. Simultaneously, the offtakes were stable from buyers due to moderate manufacturing demand in the downstream food sector and paint manufacturers. Towards the end of the quarter, prices fell again amid improvement in the availability of supplies and cautious buying activities by the downstream buyers due to a hike in bank interest rates by the Federal Reserve. It decreased the import costs of upstream Methanol and feedstock Formaldehyde prices, negatively impacting the upstream cost support. Simultaneously, end-user consumers cut down their food consumption, which reduced orders for food-thickening agents in the food industry. Simultaneously, decreased activities in the construction sector reduced offtakes from the paint industries.
APAC
The Pentaerythritol price trend oscillated in Asia during Q2 of 2023. Initially, prices rose amid an escalation in demand from the paint sector due to increased orders from construction and automotive sectors and the moderate availability of supplies in the market. Meanwhile, trading activities rose in China before the Labour Day holidays. It raised the inventory levels during the mid-quarter, while offtakes were moderately low from the downstream buyers. It improved the product stocks, and prices dipped in the market. Throughout the quarter, the production costs contracted due to the continuous reduction in the feedstock Formaldehyde prices. Towards the end of the quarter, prices showcased mixed sentiments. In China, prices contracted again due to weak demand for paint swelling agents. Simultaneously, orders depressed from insecticides and ink producers. Meanwhile, in India, quotations rose negligibly due to stable demand-supply dynamics amid limited supplies from exporters. The consumers cut down their food consumption amid rising inflation and surge in food prices, which reduced orders for food thickeners in the food sector.
Europe
In Europe, the Pentaerythritol remained bearish during quarter 2 of 2023. At the beginning of quarter 2, prices decreased due to the reduced cost support from upstream and improvement in the supply chain activities, which raised the inventory levels in the regional market. Meanwhile, during the mid-quarter, the price trend remained stable, and prices fell marginally amid the sufficient availability of supplies and moderate to low offtakes from domestic buyers due to moderate manufacturing activities in the downstream food sector and paint industries. Simultaneously, the consistent declines in the feedstock Formaldehyde prices due to a reduction in cost support from the upstream Methanol decreased the production costs of Pentaerythritol throughout the quarter. Furthermore, the decrease in energy costs reduced the variable costs. Towards the end of the quarter, the hike in bank interest rates by the European Central Bank and the Bank of England to curb rising inflation made domestic buyers conscious while making purchases, and they avoided any unnecessary trading activities. Higher mortgage rates impacted household finances, and end-user consumers cut down their food consumption, which reduced orders for thickening agents in the food sector. Simultaneously, orders fell from the paint industries due to weak activities in the construction sector.
Middle East
The Pentaerythritol prices shifted movements during Q2 of 2023 in the Middle East region. At the beginning of the quarter, the price trend remained stable, and prices increased marginally amid the firm production rates and consistent demand from importers. However, the supply rates increased during the mid-quarter due to expansion in the manufacturing sector in the past few weeks. The inventory levels rose amid stable offtakes from the downstream buyers. Simultaneously, the reduction in global energy costs amid rising temperatures reduced the variable costs. At the same time, the declines in the feedstock Formaldehyde prices amid reduced cost support from upstream Methanol throughout the Q2 of 2023 contracted the production costs of Pentaerythritol. Towards the end of Q2, the prices rose again due to moderate production rates and declined orders of Pentaerythritol from the importers amid reduced consumption rates from the food sector. It raised the domestic inventory levels. Simultaneously, the offtakes fell from the paints and coatings industries amid declined orders from the automotive and construction sectors.
For the Quarter Ending March 2023
North America
The price of Pentaerythritol declined throughout the first quarter of 2023 due to decreased market demand. Lowered upstream crude oil prices and lower shipping costs further contributed to the price reduction. It was determined that the price drop was caused by the decreased demand for this product from downstream cosmetics and paints industries. Meanwhile, the inability of labor Unions and Port Authorities to come to some agreement resulted in a temporary shutdown of the US West Coast ports of Los Angeles and Long Beach. Thus, after the conclusion of the first quarter, Pentaerythritol prices were assessed at USD 3243 per MT.
APAC
In the first quarter of 2033, Pentaerythritol (PENT) prices improved after showing steadiness in the first couple of months. The prices of PENT increased as downstream industries began ramping up their manufacturing activities. As a result, the consumption of this product got inclined in the market, which led to price growth. Meanwhile, crude oil prices also improved in the second half of the quarter resulting in improved upstream support, which culminated in increased production costs. Thus, after the conclusion of the first quarter, PENT prices were assessed at USD per MT.
Europe
Pentaerythritol (PENT) prices dropped consistently throughout the first quarter of Q1 on the back of sluggish demand fundamentals and ample material availability. An economic slowdown in the European economy coupled with the constant threat of recession resulted in weak operating rates of several key industries, which in turn culminated in sluggish offtakes of PENT. Sluggish demand dynamics have pressurized market participants to keep the quotations on the softer side. Meanwhile, imports remained firm in the European market from the oversea market on the back of a declining freight market. Thus, after the conclusion of Q1, Pentaerythritol prices in Germany were assessed at USD 3083 per MT.
For the Quarter Ending December 2022
North America
The North American and Asian markets for Pentaerythritol were identical during this quarter. The decreased demand for this commodity from paint and personal care product manufacturers for their production purposes was primarily responsible for the price drop in the United States. Another factor that contributed to the decrease in costs during this quarter was the lower cost of methanol, the base material used in the production of this commodity. So, in a bid to increase sales, suppliers offered discounts to their consumers.
APAC
ChemAnalyst's analyses show that pentaerythritol prices decreased further in this quarter. In terms of India, the market was primarily influenced by the amount of demand for this product from companies in the downstream sector and by events in the upstream crude oil market. The price of this product decreased throughout the quarter as a result of lower crude oil prices and the modest interest shown by downstream businesses in the product. As a result, more quantities of this commodity remained in stores without being traded. Hence, in order to boost sales, sellers and suppliers had to lower their prices. Upstream businesses in China have limited their production rates as a result of the government's implementation of the Covid – 19 curbs. Therefore, the paint and cosmetics industries showed average interest in Pentaerythritol for their production purposes for the same reason. The price of this product was also affected by the subpar performance of the upstream crude oil market.
Europe
Europe's pentaerythritol markets also performed moderately in the final quarter of 2022. The demand for this product was significantly influenced by a number of factors. Market participants claimed that the ongoing conflict between Russia and Ukraine was causing both upstream and downstream businesses to be concerned about rising energy costs. As a result, they reduced their production activities, decreasing demand for this product. The price of this product was also reduced as a result of the lower cost of methanol. Suppliers were able to meet the modest demand for this product and were also reducing their quotes to boost sales because there were sufficient quantities of it in inventories.
For the Quarter Ending September 2022
North America
The price of Pentaerythritol decreased as well in North American markets. The price drop of this product in the United States was primarily caused by the lowered cost of Methanol, the base material used in its production, as a result of declined costs of upstream crude oil. In addition, this product's price dropped as a result of lower demand from paint and personal care product manufacturers. As a result, Pentaerythritol closed its U.S. market at USD 3,570 per MT FOB Texas.
APAC
Pentaerythritol prices decreased further in the third quarter, according to ChemAnalyst's analyses. Due to a number of issues, this product's market in China was dull. The energy crisis, which forced both upstream and downstream businesses to halt or reduce their production rates completely, and the government's implementation of the zero covid strategies were the primary factors in the price decline. So, paints and cosmetics companies showed average interest in Pentaerythritol for their production purposes. The underperformance of the upstream crude oil market, too, had an impact on the cost of this product. So, the product closed its market in China at USD 1,570 per MT on FOB – Tianjin basis. When it comes to India, the market was primarily driven by the amount of demand that this product received from downstream firms. In the first two months, the costs of this product fell down because of lowered crude oil prices as well as the modest interest that these companies were showing for this product; however, they did show an increase in demand in the final month of this quarter as they had to fulfill the upcoming festive demands for their end-products.
Europe
In the third quarter, pentaerythritol markets in Europe also performed poorly. A number of factors had a significant impact on the demand for this product. According to market participants, consumer worries about inflation, the ongoing conflict between Russia and Ukraine, and an impending energy crisis were affecting pentaerythritol demand. Lowered cost of Methanol, too, had a role in bringing down the cost of this product. Additionally, customers found it difficult to pass on ongoing cost increases due to supply chain delays. Therefore, on a FOB-Hamburg basis, this product closed this quarter's market in Germany at USD 3,420 per MT.
For the Quarter Ending June 2022
North America
The price trend of Pentaerythritol remained stable and firm in the North American region during Q2. Feed formaldehyde costs oscillated throughout the period, and average acetaldehyde costs and consistently plunging NG costs increased the production costs of PENT in the H1 of the quarter. However, NG costs fluctuated at the end of Q2 after the fire incident at the LNG port, and NG costs decreased appreciably, stabilizing the PENT's production costs at the end of Q2. Additionally, rising energy costs resulted in cost pressure. The demand remained modest due to which production rates moderated to meet the domestic market demand, and the product offtakes remained stable.
Asia
The Asian market witnessed a stable price trend for Pentaerythritol, where product costs fluctuated slightly throughout the period. And price dropped marginally by 2% from the previous quarter. Impacted by consistently decreased feedstock acetaldehyde and formaldehyde cost, the production costs of PENT reduced swiftly throughout the period. However, towards the end of the quarter, the PENT costs rose marginally in June due to supply shortages of Methanol caused by high raw material costs in the region and increased energy and fuel costs. The demand for PENT from the downstream industries remained firm, and product offtakes were consistent during Q2 of 2022.
Europe
In the European region, the price trend of Pentaerythritol remained firm, and the product prices increased slightly throughout the quarter. The raw material formaldehyde and acetaldehyde costs increased marginally during the Q2, which raised the production cost of PENT. Increased energy and gas costs due to the supply shortages of NG induced the cost pressure. However, as a specialty chemical, its production rates were moderate, driven by demand only, so the product demand remained modest, and product offtakes were stable in the region. Additionally, product supplies were affected due to the container shortages at the ports, which improved towards the end of Q2.
For the Quarter Ending March 2022
North America
Pentaerythritol (PENT) prices increased in North America during the first quarter of 2022, with prices beginning at USD 2345/ton FOB Texas in January. The increasing demand from the downstream synthetic resins, paints, coatings, and varnishes industries and decreasing inventories and supply rates led to a surge in the prices of Pentaerythritol (PENT). The upstream formaldehyde and acetaldehyde saw an upward movement in the price of Pentaerythritol due to the ongoing war between Russia and Ukraine, as it affected the price of crude petroleum indirectly. The freight charges and the shipment cost increased, which affected the import prices in the USA, thus increasing the prices of the product.
Asia Pacific
The market sentiments paved the way to marginal firmness in the Pentaerythritol (PENT) market this quarter in India and the Chinese market with prices starting at USD 2616/ton Ex-Mumbai in India during January. Major manufacturers heard keenness in the polymer segment after witnessing a significant hike in demand during the festive season. Eventually, market sentiments escalated for PENT in India, and marginal price improvement was observed on the back of inflationary pressure. Pentaerythritol prices revived in Q1 with an increase of 7% in the prices in this quarter compared to the previous one and an increase in the demand for downstream buyers following the festive season in India. Marginal fluctuations were observed monthly, which led to a consistent hike in its prices in China. Demand fundamentals remained stable to firm from the domestic market, influencing this price trend. Furthermore, production halts also played an essential role in frequent price revisions for PENT in China.
Europe
Europe market saw an increase in Pentaerythritol (PENT) prices during the first quarter of 2022, with prices starting at USD 2510/ton FOB Hamburg in Germany, owing to high crude oil prices due to the Russian invasion of Ukraine. The war has affected the logistics of the European region, thus increasing the export prices from Germany. However, high energy values continued to send high waves to the production cost of the product. Consistent ease within and across oceanic trade rates also assisted in easing the pricing of PENT in the European market. The escalating downstream market for adhesives and plasticizers supported the PENT market to be buoyant during the quarter.
For the Quarter Ending December 2021
North America
Prices of Pentaerythritol (PENT) in the North America region, witnessed a significant fall with ease in the prices of feedstocks Acetaldehyde and Formaldehyde. Besides, weak demand by the downstream sectors including paints and coating also contributed to the downward pricing trend of PENT in this time frame. The slowdown in market activities and consistent ease in freight charges further assisted in easing the prices of PENT in Q4. Amidst the dull demand pattern PENT prices in the USA were assessed at USD 2100 per MT in December.
Asia
Pentaerythritol (PENT) prices in the domestic market remained highly volatile in Q4 2021. PENT prices revived in October with increase in the demand from downstream buyers following the festive season in India. Moving into November, prices gradually stabilized with easing supplies from international market. Amidst the loom being witnessed in the polymer sector, traders remained stressed over its offtakes from some of the segments. Major manufacturers revealed dullness in polymer segment after witnessing astonishing hike in demand during festive season. Eventually market sentiments declined for PENT in India, however, marginal price improvements were observed on the back of inflationary pressure. Consequently, PENT price heard hovering around USD 2170 per MT during December.
Europe
Pentaerythritol (PENT) market turned sluggish in Q4 2021 backed by the ample availability of feedstock amidst the slowdown in demand. However, high energy values continued to send ripples to the production cost of the product. Consistent ease in inter as well as intra oceanic trade rates also assisted in easing the pricing of PENT in the European market. Holiday season and low trading activities also kept the PENT nearly stable market in the regional throughout Q4.
For the Quarter Ending September 2021
North America
In the North America region, prices of Pentaerythritol (PENT) witnessed an exponential rise in Q3 backed by the spike in the prices of feedstocks Acetaldehyde and Formaldehyde. Besides, bolstered demand by the downstream sectors including paints and varnishes also contributed to the hike in pricing trend of PENT in this time frame. By the end of August, several manufacturers were compelled to shut down their operating units as a repercussion of the arrival of Ida hurricane across the Gulf Coast of USA. It eventually caused a supply chain disruption and led to the scarcity of raw materials which consequently fumed the prices of PENT in this quarter.
Asia
A significant surge in the prices of PENT was witnessed due to low availability of feedstock amidst sturdy demand from the downstream sectors. The improvement in the economic activities in the region led to the firm offtakes by the paints, varnishes and polyurethane manufacturers which consequently propelled prices of PENT in this timeframe. In China, congestion on several ports due to the shut down of Ningbo port effected the supply chain which contributed to the inflation in the values of PENT in the regional. Similarly in India, a hike in the values of PENT was observed backed by the improved demand for polyols coupled with the difficulty faced by the traders in procuring PENT due to delayed shipping and constraint availability of containers. Ex-Mumbai Pentaerythritol prices settled at USD 2460.97/ MT in September showcasing an increment by around USD 132/MT since July.
Europe
In Europe, Pentaerythritol (PENT) market continued to rally upwards throughout the third quarter backed by the tight supply of feedstock and low production rates due to the energy crisis. Moreover, PENT market embarked high demand from the downstream sectors which also sent ripples to the prices of PENT in the region. Besides, delivery delays amid skyrocketed freight charges and limited container availability also aided the increment in the values of PENT during this quarter. Pentaerythritol FOB Hamburg prices rose to USD 2340/MT in September.
For the Quarter Ending June 2021
North America
Pentaerythritol (PENT) prices kept rising during this quarter, bolstered by improved demand from the downstream sector across the region during Q2 2021. Prices of PENT rose from USD 1854/MT to USD 2050/MT, on the back of surging feedstock prices and firm offtakes. Prices of several feedstock chemicals kept increasing which increased the demand for polyols. Thus, due the wide range of applications of the product PENT, demand remained firm during this timeframe across North America, which supported this price hike.
Asia
Asian market witnessed firm sentiments for Pentaerythritol during this quarter, which supported the prices across regional market. Traders based in China, reported sturdy offtakes from the domestic market, in effect of improved economic activities, which almost reached pre pandemic levels. While in India, despite of lower demand from the domestic polymer sector, prices-maintained buoyancy, as traders anticipated quick recovery, as in June offtakes kept improving week over week during in India. Therefore, a firm rise in prices was also observed and the prices hovered around USD 1926/MT during June in India.
Europe
Pentaerythritol (PENT) prices witnessed a steep upward momentum during this quarter across Europe. This surge in demand was backed by improvement in economic activities in effect of post pandemic recovery in several countries of Europe. In addition, unprecedented surge in demand for polyols including PENT enhanced the market sentiments, where the supply activities remained tight throughout this timeframe. Therefore, major manufacturers were compelled to raise their product prices. Perstorp increased their Pentaerythritol prices by USD 354.3/MT for Europe, Middle East and Africa, effective from 1st of July 2021.
For the Quarter Ending March 2021
North America
US witnessed extreme difficulties to sustain the production of PENT cross the region due to severe winter storm disruptions across US gulf. More than 80% plant of upstream Methanol were down during this period, which halted the overall supply across the globe and feedstock Formaldehyde manufacturers faced shortages. In addition, high demand for upstream methanol from fuel sector amid global shortage, supported its prices which hovered around USD 1560/MT during February 2021 and also increased the prices of feedstock Formaldehyde across the region.
Asia
During this quarter, Demand for PENT remained firm across APAC region, supported by demand from Polyurethane, PVC and adhesives manufacturers. In January, construction and industrial sectors showed consistent improvements and hence the demand of its upstream products increased from other sectors also. Rapid rise in demand and tampered supply led to rise in prices of its upstream Methanol. Upstream Methanol supply was hampered due to multiple plant shutdowns in US, which affected the supply of feedstock Formaldehyde and eventually affected the production of PENT across the region. Meanwhile, in Anyang, China, CRI (Carbon Recycling International) unveiled a new CO2 to methanol production facility. This plant will recycle 160,000 MT of CO2 per year, resulting in a boost in upstream Methanol supply across the country.
Europe
In the European market demand for PENT overed between mild to low during Q1 2021. Although the sectors like adhesives and cosmetics were showing improvement compared to prior quarter, as some countries started healing from second wave of COVID 19 across the region. Meanwhile, Equinor's main methanol production unit in Norway has resumed operations following a lengthy shutdown that began in December 2020 due to a major fire at the plant. This plant has a capacity of 900,000 MT/year and accounts for nearly 25% of Europe's overall Methanol supply. Its resumption will boost upstream Methanol supplies across the region and potentially stop price increases. Resumption in upstream methanol supply would improve the supply for feedstock Formaldehyde in the market in forthcoming quarter.
For the Quarter Ending December 2020
North America
During November 2020, USA PENT market was severely hit by unplanned plant turnarounds in Gulf Coast, due to spate of hurricanes in the region. The production of many upstream products including Methanol remained low, that consequently lowered down the supply of downstream derivatives like feedstock formaldehyde. Since the demand of Pentaerythritol from the domestic market remained high due to steady economic revival from COVID 19 against the supply, a surge in prices for PENT was observed in the final quarter of 2020.
Asia
China faced appreciable hike in prices of raw material Methanol due to shortage in its supply from Iran during November, that ultimately caused increase in prices of all the derivatives of Methanol including feedstock Formaldehyde. In India, the supply for feedstock formaldehyde kept short due to forced shutdown of several plants by Indian govt in North India during November. These shutdowns were implied after several plants were caught running without environmental approvals. The abrupt shortage for feedstock Formaldehyde across Southeast Asia directly impacted the prices of PENT in the region.
Europe
During Q4 2020, Europe also faced shortage of upstream Methanol which ultimately caused the shortage of its derivative products including Formaldehyde and Pentaerythritol. Besides, an astonishing fire accident took place at Equinor’s methanol production plant which shook the supply of upstream methanol across the region. The incident directly affected the market fundamentals of Pentaerythritol during Q4 2020 as well. Although the demand of PENT from the domestic market like paint, varnish and PVC was decent throughout the quarter, market players could not gain much due to limited availability of feedstock.
