The Pentaerythritol prices remained unchanged in the Middle East during April 2025 due to balanced demand-supply dynamics. The production rates in key regional exporter Saudi Arabia remained moderate, with ease in cost support due to stabilizing feedstock demand and lower Methanol prices driven by reduced demand. However, supply challenges from port congestion, fluctuating freight rates, and ongoing supply chain disruptions impacted export rates. Despite these issues, supply availability remained firm, bolstered by growth in U.S. chemical trade. Concurrently, demand for Pentaerythritol in downstream industries was mixed, with slower demand in cosmetics and personal care sectors, while the construction industry faced delays due to rising input costs and new tariffs. As a result, Pentaerythritol prices in the Middle East are expected to rise in the upcoming week, driven by increased demand from the paint and cosmetics industries, tight supplies, and higher freight and production costs.

The Pentaerythritol production rates were moderate during the month. Meanwhile, cost support eased from feedstock Formaldehyde amid stabilization in demand and a decrease in upstream Methanol prices due to the decline in heating demand amid increasing temperatures across the Northern Hemisphere. However, supply was affected by port congestion, fluctuating freight rates, and ongoing market changes. Around 11% of the global fleet was delayed due to congestion, worsened by weather issues and supply chain disruptions. Despite these challenges, Pentaerythritol supply remained steady, supported by growth in U.S. chemical trade, with exports up by 16.3% and imports rising 5.8% in March 2025, resulting in a trade surplus of USD 3.1 billion. However, there was still uncertainty due to the potential for new tariffs under the Trump Administration, which could disrupt the market further.

On the demand side, orders for Pentaerythritol from downstream industries stayed stable, though performance varied across key sectors. In the cosmetics and personal care industry, lower demand for mass-market products, less marketing, and reduced social media engagement led to decreased consumption. As a result, brands shifted toward smaller, more affordable products. In the construction sector, a major user of Pentaerythritol-based resins and coatings, activity remained steady, but challenges like rising material costs and new tariffs on steel and aluminium caused delays and reduced planning, especially in institutional construction. This led to a decrease in the overall demand for Pentaerythritol used in making PU foam.

However, the Pentaerythritol prices are expected to rise in the Middle East region during the second quarter of 2025. Demand is likely to increase from the downstream paint and cosmetics industries, while supply availability might remain tight due to lower production rates in the summer. At the same time, anticipated increase in freight costs, driven by rise in shipping activity amid favorable trade conditions during the summer, could further push the prices. Additionally, anticipated increases in input costs may lead to higher production costs for Pentaerythritol in the upcoming weeks.