The Urethane Blog
CertiPUR-US® Program Adds Michigan-Based
Enthalpy Analytical as Approved Laboratory
Enthalpy Analytical in Mount Pleasant, Michigan, becomes fourth laboratory
authorized to test foams to meet CertiPUR-US® program requirements
(Rochester Hills, Mich. – May 30, 2023) The CertiPUR-US® foam certification program has approved its fourth testing laboratory for CertiPUR-US® certification of flexible polyurethane foam for use in upholstered furniture and bedding.
Following a rigorous selection and approval process that has spanned more than two years, Enthalpy Analytical has been approved by the Alliance for Flexible Polyurethane Foam’s CertiPUR-US Board of Directors to conduct the content analysis and emissions testing to determine if submitted foams meet the certification program’s requirements as outlined in the program’s Technical Guidelines.
Few labs have the equipment and capacity to do all the testing required, which is one of the conditions for being an approved lab.
“Enthalpy was thoroughly vetted by our board and our Technical Advisory Group and, in addition to having the required equipment, had to pass round-robin testing with sample foams to show results matched results of other approved labs on identical foams,” explained Michael Crowell, CertiPUR-US executive director.
“We are pleased to join the CertiPUR-US program as an approved laboratory,” said Sarah Mack, business development manager for Enthalpy Analytical. Mack elaborated: “We have seen environmental and sustainability initiatives focus on and continue to promote accountability programs such as this and are proud to actively support this important work. It is an honor to assist organizations with their goal of protecting consumers and is a direct complement to our mission to protect the air we breathe, the water we drink, and the soil that feeds us!”
Only one other lab that is approved for testing compliance with the CertiPUR-US program requirements is located in the U.S. Other labs are located in Denmark and Germany. There are now four approved labs worldwide and listed at www.certipur.us/labs.
“We are very pleased to welcome this highly regarded company with a solid reputation,” said Crowell. “Adding another U.S.-based testing facility provides more choices for the more than 90 foam producers participating in the program and certifying more than 200 foam families on an annual basis.”
Certified flexible polyurethane foam products are analyzed by these independent, accredited testing laboratories and are certified to be made without ozone depleters, made without lead and heavy metals, made without formaldehyde, made without phthalates regulated by the Consumer Product Safety Commission and screened for relevant chemicals (including flame retardants) classified as carcinogenic, mutagenic or reprotoxic (see Technical Guidelines at certipur.us/technicalguidelines for details). Foams are also tested for emissions and must be low VOC (Volatile Organic Compound) emissions for indoor air quality (less than 0.5 parts per million).
In addition to foam producers submitting foams for testing, the CertiPUR-US program itself uses the approved labs to conduct testing of foam samples acquired through random on-site foam production plant checks of participating producers.
Enthalpy Analytical LLC is a wholly owned subsidiary of Montrose Environmental Group Inc., providing environmental laboratory services as part of Montrose’s Measurement and Analysis division. Enthalpy operates a network of accredited laboratories across the U.S. Within the network, Enthalpy has laboratories that specialize in analysis of air, soil, water and sediment.
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May 29, 2023
Will Shutdown of Dow’s PO Plant in U.S. Change Asian Trade Flow?
PUdaily | Updated: May 29, 2023
The end-users of propylene oxide (PO) include industries such as real estate, automobiles, furniture, refrigerators, and freezers, which are closely related to the development of the national economy. An increase in demand for polyurethane due to the rise in the prosperity of these industries will stimulate polyols suppliers to increase production, thereby increasing the demand for PO and driving up prices.
On May 16, it was reported that Dow Chemical plans to close its PO plant in Freeport, Texas, by the end of 2025.
The decision to close the PO plant arose from the fact that the plant is approaching its end-of-life, and the overall chemical industry is not prosperous due to the slowing global economic growth and various uncontrollable factors. The demand from most end-users is weakening, and polyurethane suppliers are paying more attention to higher value-added segments. Therefore, the decision to close the plant is part of Dow Chemical’s efforts to optimize costs and supply conditions.
Dow’s PO plant in Freeport will continue to operate until the end of 2025, while downstream polyether polyol plants will continue to operate after the PO plant is shut down. After 2025, Dow will use resources from other regions or third-party suppliers to supply PO to its polyol plants. Dow is also investing in logistics capabilities, such as PO tanks, pipelines, and new barges to ensure the normal supply.
Currently, Dow Chemical is the world’s largest PO producer with an extensive layout of plants in the U.S., Germany, Brazil, Belgium, and Thailand. Its total capacity is 2.685 mtpa, contributing 20.24% of the global PO output.
Dow Chemical’s PO Capacity Layout (10kT)
Global PO Capacity & YoY Changes, 2018-2022 (10kT, %)
Dow’s PO production uses the chlorohydrin process technology. The patent owners of the chlorohydrin process are mainly Dow in U.S., Asahi Glass, Mitsui Toatsu and Showa Denko in Japan. The chlorohydrin process was industrialized as early as 1931 and has the advantages of mature technology, short process, low purity requirements for raw materials, and low investment. The key of this technology is the chlorohydrin reactor, and Dow Chemical’s tubular reactor is representative of the chlorohydrin process.
But the chlorohydrin process causes severe environmental pollution, and under the background of increasingly stringent environmental regulations, the use of chlorohydrin technology faces enormous challenges. The US government has already eliminated chlorohydrin technology in 2000, and China has also listed chlorohydrin process as a restricted item in the Guidance Catalogue for Industrial Structure Adjustment (2011), and new facilities cannot adopt this technology.
The shutdown of Dow’s PO plant in the U.S. will cause a supply gap. Part of the gap will be filled by LyondellBasell (In March of this year, LyondellBasell successfully started up the world’s largest PO and TBA plant in Texas. These new assets on the U.S. Gulf Coast have an annual capacity of 470,000 tonnes of PO and 1 million tonnes of TBA and its derivatives). Some PO suppliers in countries such as South Korea, Saudi Arabia, and Thailand will also increase exports to the U.S. China’s PO export is constrained by process requirements and lack of export tax refunds. The tax rebate rate for downstream products of PO, such as polyether polyols, propylene glycol, and propylene glycol methyl ether, has been increased to 13%, further enhancing their export competitiveness.
May 29, 2023
Wanhua’s 250kT TDI Facility in Fujian Starts Production, Phase II 300kT TDI Project is Around The Corner
PUdaily | Updated: May 24, 2023
On May 22, 2023, Wanhua Chemical successfully started its 250kT TDI facility in Fujian with producing qualified products, marking another breakthrough in the TDI industry, according to the company announcement. With this, Wanhua now has four TDI production bases globally, with a total production capacity of 950 ktpa, including 300 ktpa in Yantai, 250 ktpa in Fujian, 250 ktpa in Hungary, and 150 ktpa at former Juli Group’s plant. The company contributes 30% of the global TDI capacity, making it the largest TDI supplier in the world.
Meanwhile, Wanhua Chemical is preparing to launch its Phase II 300 ktpa TDI project in Fujian, according to public information. It is estimated that Wanhua’s TDI capacity in Fujian will exceed 550 ktpa after the operation of its Phase II 300 ktpa facility. Based on the construction speed of Wanhua’s previous projects, it is likely that the Phase II TDI facility in Fujian will start operating at the end of 2024.
The global TDI consumption will be around 2 million tonnes in 2023 and roughly 2.4 million tonnes in 2025, according to Pudaily’s forecast. It is estimated that global TDI capacity will reach 3.515 mtpa after the completion of Wanhua’s Phase II 300 ktpa TDI facility in 2024. In the future, the TDI supply-demand balance will continue to tilt, and the oversupply situation will become prominent, leading to intense competition.
May 16, 2023
China Mattress Exports Increase Significantly in Q1 2023
PUdaily | Updated: May 16, 2023
China exported a total of 2.457 million spring mattresses in the first quarter of 2023, a year-on-year increase of 14.8%. The export value reached USD 194.02 million, a year-on-year increase of 2.5%, according to customs data.
Figure 1: China Spring Mattress Export, 2022-2023 (10,000 pieces)
China exported a total of 7.511 million foam mattresses in Q1 2023, a year-on-year increase of 7.9%. The export value was USD 163.93 million, which remained basically stable compared to the same period last year.
Figure 2: China Foam Mattress Export, 2022-2023 (10,000 pieces)
It is noteworthy that although the export volume increased significantly year-on-year, the growth rate of export value was significantly smaller, and the unit price and profit for exports declined year-on-year.
From January to March 2023, the operating revenue of furniture manufacturers above designated size in China totalled CNY 148.59 billion, a year-on-year decrease of 13.2%; operating costs reached CNY 123.12 billion, a year-on-year decrease of 14.3%; and their total profit was CNY 5.56 billion, a year-on-year decrease of 12.6%, according to the National Bureau of Statistics of China.
Looking at the quarterly reports of listed companies in Chinese home furnishing industry, among nearly 120 home furnishing companies that had already published their reports this quarter, 83 companies experienced a decline in revenue and 29 companies suffered losses.
However, the prosperity of China’s real estate industry in the first quarter partially restored, with housing completions accelerating growth in March and home sales keeping recovery. In terms of end-user spending, there have been signs of a rebound in domestic and foreign consumption. Offline store traffic has significantly increased. Under sales promotions, some demand for replacement in mature markets has been boosted. It is predicted that China’s home furnishing market will experience marginal improvement in the near future.
May 16, 2023
Average Age Of American Cars Hits Record High
by Tyler Durden
Monday, May 15, 2023 – 08:00 PM
For the sixth consecutive year, the average age of vehicles in the US has risen, indicating that Americans are holding onto their cars for longer than ever before.
According to data collected by S&P Global Mobility, the average age of passenger vehicles on the road has reached a record high of 12.5 years. This trend, which began in 2017, has accelerated in a post-Covid world as new car prices soared due to shortages, and more recently, borrowing costs have skyrocketed, causing an affordability crisis. However, this trend might also suggest automobile manufacturers are producing higher-quality vehicles that break down less often.
“This is the sixth straight year of increase in the average vehicle age of the US fleet. It also reflects the highest yearly increase since the 2008-2009 recession, which caused an acceleration in average age beyond its traditional rate due to the sharp decline in new-vehicle sales demand,” S&P Global Mobility pointed out.
Todd Campau, associate director of aftermarket solutions for S&P Global Mobility, noted a confluence of factors from the pandemic supply chain snarls to soaring interest rates in 2022 “would provide further upward pressure on the average vehicle age.”
S&P Global Mobility forecasts new vehicle sales will be 14.5 million units in 2023, which is expected to slow the average age growth rate in the coming year.
“While pressure will remain on average age in 2023, we expect the curve to begin to flatten this year as we look toward returning to historical norms for new vehicle sales in 2024,” Campau said.
A plethora of used cars on roadways will benefit the vehicle service industry. An aging fleet means vehicles will require more repairs. Campau said:
“Traditionally, the ‘sweet spot’ for aftermarket repair was considered 6-11 years of age, but with average age at 12.5 years, the sweet spot for aftermarket repair is growing.
“There are almost 122 million vehicles in operation over 12 years old.”
As the Bloomberg chart shows below, only the auto parts business continues to register steadily higher top-line revenue.
Wall Street has priced in the auto parts boom as shares of AutoZone Inc have gone parabolic.
The auto parts industry is benefiting from America’s aging fleet of vehicles.
https://www.zerohedge.com/markets/average-age-american-cars-hits-record-high
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