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.
