The Urethane Blog
February 13, 2025
AD/CV Duties Sought on Methylene Diphenyl Diisocyanate
A petition filed Feb. 12 alleges that methylene diphenyl diisocyanate from China is being sold at less than fair value in the U.S. and benefiting from countervailable subsidies. The alleged average dumping margins range from 305.81 percent to 507.13 percent.
The product subject to this petition is used the production of polyurethanes for many applications, including the manufacture of rigid polyurethane foams used for home and refrigerator insulation, coatings, adhesives, binders and sealants. It is commonly called polymeric, monomeric, or modified MDI and is also known as methylene bisphenyl isocyanate, 4,4’-diphenylmethane diisocyanate, methylene di-p-phenylene ester of isocyanic acid, and methylene bis(4-phenyl isocyanate), among others.
MDI consists of an aromatic polyisocyanate material whose composition includes two or more isocyanate groups (i.e., functional groups containing a nitrogen atom, a carbon atom, and an oxygen atom bonded together) attached to one or more benzene rings (i.e., flat, symmetrical molecules made up of six carbon atoms arranged in a hexagonal ring) that are joined by methylene bridges (i.e., a carbon atom bound to two hydrogen atoms and connected by single bonds to two other distinct atoms in the rest of the molecule).
The petition covers MDI (1) irrespective of whether it has gone through a distillation process, (2) regardless of acid content, reactivity, functionality, freeze stability, physical form, viscosity, grade, purity, molecular weight, or packaging, (3) that has been processed in a third country, including by commingling, diluting, introducing or removing additives, or performing any other processing that would not otherwise remove the MDI from the scope if performed in the subject country, and (4) that is commingled or blended with MDI from sources other than China.
The petition does not cover (1) mixtures of MDI with other materials when the combined MDI component comprises less than 40 percent of the total weight of the mixture, (2) partially reacted MDI when its nitrogen-carbon-oxygen content is less than 10 weight percentage, or (3) any separately packaged polyol that would not fall within the scope if entered on its own.
MDI is currently classifiable under HTSUS subheadings 2929.10.8010 and 3909.31.0000 and may also be entered under subheadings 3506.91.5000, 3815.90.5000, 3824.99.2900, 3824.99.9397, 3909.50.5000, 3911.90.4500, 3920.99.5000, and 3921.13.5000.
The Department of Commerce and the International Trade Commission will next determine whether to launch AD and CV duty and injury investigations, respectively, on this product. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact Sandler, Travis & Rosenberg as soon as possible.
February 12, 2025
Leadership Change at Mattress Firm
Feb. 12, 2025 9:00 AM ETTempur Sealy International, Inc. (TPX)
– New Interim CEO of Mattress Firm, Scott Thompson
LEXINGTON, Ky., Feb. 12, 2025 /PRNewswire/ — Tempur Sealy International, Inc. (TPX) (NYSE: TPX, “Company” or “Tempur Sealy”) today announced management changes at Mattress Firm. The Company recently acquired Mattress Firm, the nation’s largest mattress specialty retailer.
John Eck has decided to step down as Chief Executive Officer of Mattress Firm. The Company has entered into a consulting agreement with Mr. Eck to ensure a smooth transition. Scott Thompson, Chairman and CEO of Tempur Sealy, will act as Interim CEO of Mattress Firm during a transition period. The Company expects to appoint a new CEO of Mattress Firm within the next 6 to 9 months.
“We thank John for his successful 6 years at Mattress Firm, leading the business to outperform the market over the period of his leadership,” commented Scott Thompson. “I look forward to working with the Mattress Firm leadership team during this transitional period.”
The Company previously announced it will change its name to Somnigroup International Inc. (“Somnigroup”), effective February 18, 2025. Mattress Firm, Dreams and Tempur Sealy will operate as decentralized business units under Somnigroup International. Mattress Firm and Dreams will continue to operate as multi-branded retailers and Tempur Sealy, primarily a manufacturer, will continue to serve third-party retailers as well as Mattress Firm, Dreams and Tempur Sealy direct-to-consumer channels.
https://seekingalpha.com/pr/19999988-leadership-change-at-mattress-firm#hasComeFromMpArticle=false
February 11, 2025
LyondellBasell mulls Dutch PO/SM plant reorganisation
- Market: Petrochemicals
- 11/02/25
Chemicals firm LyondellBasell is in negotiations with workers at its Maasvlakte propylene oxide (PO) and styrene monomer (SM) production facility in the Netherlands about “a reorganisation at the plant”, Dutch workers’ union FNV told Argus.
The union is negotiating with the company on compensation for workers whose jobs may be affected and assistance with transitioning to new roles. Members will vote on the proposed plan by the end of February.
“At this stage, no definitive decisions have been made,” LyondellBassell said today. The firm “continuously evaluates business conditions, our portfolio and a wide range of options for managing our assets,” it said.
The Maasvlakte PO/SM plant is a 50-50 joint venture between LyondellBasell and Germany’s Covestro.
“Covestro regularly reviews its portfolio in the light of business conditions. This includes discussions with our joint venture partner regarding the Maasvlakte site,” Covestro said.
LyondellBasell and Covestro both declined to comment on whether they are discussing a possible sale of the Maasvlakte facility.
LyondellBasell launched a strategic review of its European assets last May. The review is ongoing, the firm said last month.
The Maasvlakte plant is one of six ‘non-core’ European assets, the company said in August last year.
The facility has 315,000 t/yr of PO capacity and 640,000 t/yr of SM capacity. It began operations in 2003 and employs approximately 160 people.
The plant has been idled since December last year 2024. It has been intermittently idled several times in recent years, reflecting a structural surplus in Europe’s PO and SM production capacity. The negotiations with workers indicate LyondellBasell is considering longer-term changes to operations at the site.
Europe’s petrochemicals sector remains squeezed by high energy costs, a higher overall cost base compared to other production regions and stagnant regional downstream demand.
LyondellBassell also has 220,000 t/yr of PO and tertiary butyl alcohol (TBA) production capacity in France and 260,000 t/yr of PO and TBA capacity in the Netherlands. It also has a total of 649,000 t/yr of PO and SM capacity in the US that it operates jointly with Covestro, as well as over 1mn t/yr of its own PO and TBA capacity in the US including a 470,000 t/yr plant in Channelview, Texas, which started up in early 2023.
Production margins for PO/TBA facilities, which supply TBA for MTBE production, are generally much more favourable than for PO/SM plants. And lower US energy costs help to make US PO output more cost-efficient than in European production.
US exports of PO to Europe have increased sharply since 2023, reaching 7,800 t/month in 2024, according to US customs data, up from just 760 t/month in 2020 (see graph).
By Laura Tovey-Fall
US PO exports’000 t
February 10, 2025
Multiple people injured after explosion, fire at industrial plant in Crawford County
February 9, 2025 / 5:16 PM EST / CBS Pittsburgh
SAEGERTOWN, Pa. (KDKA) — Multiple people were injured after an explosion and fire at an industrial plant in Saegertown, Crawford County, officials said on Sunday.
According to CBS affiliate WSEE-TV, the incident was reported around 10:30 a.m. Sunday at the Parker LORD facility in Saegertown.
The facility makes adhesives, coatings, and specialty materials used in the automotive, aerospace, industrial, and oil and gas industries.
Several eyewitnesses told WSEE-TV they heard an explosion, which public safety officials later confirmed. Firefighters were responding to a triggered fire alarm at the facility, and when firefighters went inside the building, the explosion occurred.
As many as 12 people, including five employees and four firefighters, suffered injuries because of the incident. All but one were taken to Meadville Medical Center for treatment; the other was taken to UPMC Hamot, according to WSEE-TV.
Most went to the hospital as a precaution, and others suffered minor injuries.
Christopher Farage, the Vice President of International HR and External Affairs at Parker Hannifin, issued a statement to KDKA-TV regarding the incident.
Local officials issued a shelter-in-place order to surrounding businesses and residences as a precaution, which [was] lifted several hours later. The fire has now been isolated. There was major damage to the facility and minor injuries were reported. All injured parties have been or are being treated.
We offer our sincere thanks to the local fire department, emergency management and first responders and wish all of those who were injured a speedy recovery. Once the investigation of the cause of the fire and explosion is complete, we will learn from this incident and continue to place the safety of our team members and our communities as our highest priority.
Farage added that all operations within the facility have been suspended until further notice. The cause of the fire and explosion remains under investigation.
February 6, 2025
Residential furniture orders slump in November, cautious optimism for 2025
February 4, 2025 | 3:02 pm CST
Photo By Spacejoy on Unsplash
HIGH POINT, N.C. — New residential furniture orders fell 9% in November compared to the same period in 2023, according to the January issue of Furniture Insights. This decline follows a relatively flat October and marks a return to the downward trend observed from May through September. Approximately 40% of the survey participants reported increased orders in November compared to a year ago.
However, new orders were up 5% compared to October 2024 figures although down slightly for the year-to-date, noted Mark Laferriere, assurance partner at Smith Leonard, the accounting and consulting firm that produces the monthly report.
November shipments were down 1% compared to 2023 figures, and flat with October 2024. Year to date through November 2024, shipments were down 7% compared to 2023. Backlogs were down 10% compared to November 2023, but up 1% from October 2024 “as current new orders outpaced shipments during the last month.”
“Receivable levels were up 1% from October 2024, but down 4% from November 2023, both of which are materially in line with the respective shipment trends, given normal timing differences with collections,” Laferriere noted. “Inventories were consistent with October 2024 at up 1% and down 4% from
November 2023, which are in line with prior periods and current operational levels,” he added.
On a seasonally adjusted basis, sales at furniture and home furnishings stores were up 2.3% in December compared to the previous month and up 8.4% from December 2023. However, sales were down 2.2% for the year to date December 2024, compared to the same period for 2023 on an unadjusted basis, according to the January Furniture Insights.
Future projections are difficult, Laferriere said, without knowing the extent of the impact tariffs will have on the furniture industry, housing and the overall economy. Domestic manufacturers, especially those with “hybrid operations,” will be impacted through their outsourcing of materials and components.
“While likely greatly oversimplifying a very complex situation, an additional 10% tariff on Chinese goods would seem manageable given the inflationary pressures the industry has dealt with in the last few years, coupled with the long product pipeline allowing time for companies to make necessary adjustments,” he noted. “What seems more immediately concerning is the potential impact of tariffs on Canadian lumber utilized by the US housing industry as well as Canadian energy and the impact that could have on inflation in general, and specifically, consumer spending, interest rates, and ultimately housing activity that drives the furniture industry.
“This all follows a Vegas market which was largely reported to be positive, an averted port strike last month, as well as recent gains in housing and positive trends at retail.”
Laferriere added, “What makes this situation so difficult are the unknowns, the volatility, and the potential for change/reversals with or without notice, including the potential for tariffs on other Asian countries such as Vietnam and the impact of expected retaliatory tariffs on U.S. exports.
“Those in the industry are certainly smart enough and experienced enough to navigate any playing field, but they just need to know the rules of the game they’re playing. So, while these items are certainly disruptive in the short-term, the industry has dealt with similar situations in the past and we’re hopeful there are still enough things trending in the right direction so that the positive outlook for 2025, especially the second half, will materialize for those who have worked so hard to get to this point.”
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