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.
