Pentaerythritol        

*Millions of pounds per year. Commercial production is from formaldehyde and acetaldehyde. Production usually includes three grades of pentaerythritol; mono (97-98 percent, with di- and tripentaerythritol impurities), technical (88 percent, with 8 - 10 percent dipentaerythritol, balance tri-) and nitration (98-99 percent, with di- and tripentaerythritol impurities). Mono- and technical materials account for an estimated 85 to 90 percent of US sales. Hercules produces di- and tripentaerythritol as purified coproducts.

Profile last published 8/14/00; this revision 5/12/03.

DEMAND

2001: 150 million pounds; 2002: 136 million pounds; 2006: 140 million pounds, projected. Demand equals production plus imports (2001: 36 million pounds; 2002: 18 million pounds) less exports (2001: 31 million pounds; 2002: 27 million pounds).

GROWTH

Historical (1997 - 2002): 0.1 percent per year; future: 0.9 percent per year through 2003.

PRICE

Historical (1997 - 2002): High, $1.16 per pound, tech. grade, bags, c.l., f.o.b. frt. alld.; low, $1.06. per pound, same basis. Current: $1.13 to $1.16 per pound, same basis.

USES

Alkyd resins, 60 percent; neopolyol esters for lubricants, 16 percent; rosin and tall oil esters, 11 percent; pentaerythritol tetranitrate (PETN), 4 percent; miscellaneous, including urethane coatings, flame retardant paints, polyvinyl chloride stabilizers, olefins antioxidant and pentaerythritol triacrylate, 9 percent.

STRENGTH

Consumption of pentaerythritol in neopolyol esters for synthetic lubricants has been growing at an annual rate of 4 percent. This is the second largest use segment at 16 percent. Neopolyol esters are the optimal base stocks for use in chlorofluorocarbon (CFC) replacement refrigerants, used primarily in nonautomotive refrigeration systems. Because of their superior thermal stability, they are also favored in lubricants for aviation turbine engines, automotive gasoline and diesel engines, and small two-cycle engines used in recreation vehicles like outboard motors and snowmobiles.

WEAKNESS

Pentaerythritol’s largest use sector, 60 percent, is alkyd resins, nearly all of which are used in alkyd surface coatings. These comprise architectural coatings, OEM product finishes, and specialty coatings. Manufacturers of alkyd coatings, blend pentaerythritol to balance a coating’s properties with cost. Pentaerythritol competes with glycerin here, but has been loosing share as glycerin’s price has fallen in recent years. Also in recent years, there has been a declining market for alkyd-based coatings, which are being replaced by waterborne and other coating technologies. This is in response to environmental regulations concerning volatile organic compound (VOC) emissions. And most recently, the slowed economy has softened demand for alkyd coatings. Over the forecast period, alkyd resin demand for pentaerythritol is predicted to decline by 0.5 percent per year.

OUTLOOK

Pentaerythritol's largest application, alkyd resin modification, is mature and slowly declining with price competition from alternative ployols, like glycerin, and soft economic conditions. The other applications are growing at the GDP rate, except for neopolyol esters as noted above. Consequently, overall growth is forecasted to be 0.9 percent annually for the next four years.

HISTORICAL DATA