In the European region, Pentaerythritol (PENT) prices remained stable in Germany during March 2025 amid moderate demand-supply dynamics. The production rates were affected by the low availability of feedstock Formaldehyde supplies due to delayed shipments because of supply chain disruptions caused by labor strikes. In terms of demand, the cosmetics sector saw steady growth driven by luxury and sustainable products from major companies like Beiersdorf. Despite steady demand from cosmetics and sustainability-focused sectors, labor strikes at European ports further limited growth during the period. The PENT market is likely to remain stable with growth in the upcoming months, driven by increased orders from PU foam manufacturers, supply issues with formaldehyde, rising competition, and anticipated increases in freight costs.

PENT production rates remained moderately low in the region due to the stressed availability of feedstock Formaldehyde supplies. The feedstock Formaldehyde prices increased due to higher upstream Methanol costs, rising energy prices, and steady demand from downstream industries. It raised the upstream cost support on PENT production costs. Simultaneously, PENT supplies in Europe were further impacted by disruptions at ports due to severe weather and labor strikes. Strikes across French ports, including major hubs like Marseille Fos and Le Havre, afflicted the internal trade in the region. These disruptions caused delays in container handling and land transport. As a result, shipping companies had to reroute vessels around the Cape of Good Hope and other ports in the Atlantic and Mediterranean. It affected the timely supply of PENT to the buyers, causing delays in meeting the demand of downstream industries.

Meanwhile, the demand for PENT in downstream industries showcased mixed sentiments. In the cosmetics sector, the rising demand for luxury and sustainable products in Europe supported the PENT need to produce daily care products like sunscreen and moisturizer despite slower growth expectations in companies like Beiersdorf. On the other hand, the European market faced declines in the paints and coatings industry, which led to subdued demand for PENT to make alkyd resins for paints, especially in the production of eco-friendly coatings.

Despite these challenges, the overall market for PENT is expected to remain stable in the coming months with some growth. Orders from polyurethane (PU) foam manufacturers are likely to increase, which will boost demand for PENT. Moreover, production rates might be affected because formaldehyde, a key feedstock, may remain in short supply due to high demand. More competition is expected as companies increase their orders to stock up. Higher freight costs, caused by more shipping activity in the summer, could also push prices up.