Polyurethane to 2009

Abstract

US polyurethane market to reach $7.4 billion in 2009

Polyurethane demand in the US is forecast to increase 3.2 percent yearly to 7.5 billion pounds in 2009, valued at $7.4 billion (resin cost). Price increases will be constrained by moderating raw material prices, which will recede from 2004 and 2005 levels when plastic and other raw material prices spiked sharply. Advances will reflect widespread insulation and cushioning applications, as well as price and performance advantages over other materials. Construction will remain the leading polyurethane market, accounting for 37 percent of total uses in 2009.

Best opportunities offered by rigid urethane foam

Rigid polyurethane foam will present the best opportunities through 2009, expanding 4.5 percent annually to 2.4 billion pounds. Increases will be attributable to opportunities in the insulation area based on rapid expansion in the nonresidential building construction segment. Rigid urethane foam is a highly efficient thermal insulating material with widespread building, tank, pipe and appliance uses. The material may also be foamed-in-place or used as the core insulating material in structural panels. Thermoplastic urethanes (TPUs) will exhibit the most rapid growth, based on their good strength and resiliency. TPUs are relatively expensive, however, which limits demand largely to niche markets that require their unique blend of qualities Flexible polyurethane foam demand is projected to grow at a below average pace through 2009 based on mature cushioning applications in furniture, carpet backing and other areas. Best opportunities are anticipated in bedding areas as a result of inroads made by all-foam mattresses and pillows. Above average growth is expected for polyurethane coatings, adhesives and sealants based on performance advantages over competitive materials.

Construction to remain dominant market

Construction will remain the leading polyurethane market and expand 4.5 percent per year to 2.8 billion pounds in 2009. Stimulants include greater use in building, tank and pipe insulation, wood and metal coatings and bonded wood products. Household product uses will be propelled by rising consumer spending patterns and increased purchases of flexible foam mattresses and rigid insulating foams in major appliances such as refrigerators. Transportation equipment uses will be buoyed by rebounding motor vehicle production and subsequent needs for polyurethane flexible foam seating, as well as coatings, sealants and other products.

Study coverage

This study provides historical US demand data through 2004 and forecasts to 2009 and 2014 by polyurethane types (e.g., flexible foam, rigid foam, coatings, adhesives, sealants), and markets (e.g., construction, transportation, furniture, carpets, appliances, packaging). In addition, the market environment section analyzes developments in end use markets such as construction and transportation equipment while presenting a discussion of key factors such as pricing trends, technology and international activity. The industry structure section presents an overview of mergers and acquisitions, research and development trends, and other competitive variables, and includes company profiles of leading competitors such as BASF, Bayer, Dow Chemical, Foamex International, Huntsman and Lyondell Chemical.