The Urethane Blog

June 28, 2019

Harvard Housing Study

State of the Nation's Housing 2018

With the nation’s economy on sound footing and incomes on the rise, the number of people forming households in the US has finally returned to a more normal pace. Housing production, however, has not. Our 2019 State of the Nation’s Housing report documents how the housing shortfall is keeping pressure on house prices and rents, eroding affordability for modest-income households in many markets. The 2019 report will be released in a live webcast today at 12:00 pm ET from the Federal Reserve Bank of Atlanta.

Several factors may be contributing to the slow construction recovery, including rising land prices, regulatory constraints, and persistent labor shortages. These constraints raise costs and limit the number of homes that can be built in places where demand is highest.

Despite these challenges, the report finds that the number of homeowners in the US continued to rise in 2018, while the number of renter households fell once again, a stark contrast to the increases of the 12 preceding years. Meanwhile, the share of households paying over 30 percent of their income for housing declined for the seventh straight year in 2017, but much of the progress was among homeowners, while cost burdens for modest-income renter households continued to rise.

To ensure the market can produce homes that meet the needs of a growing population, the public, private, and nonprofit sectors must address constraints on the development process. And for the millions who struggle to find housing that fits their budget, public efforts will be necessary to close the gap between what they can afford and the cost of producing decent housing.

Read the full report here:

 

https://www.jchs.harvard.edu/state-nations-housing-2019

June 28, 2019

Harvard Housing Study

State of the Nation's Housing 2018

With the nation’s economy on sound footing and incomes on the rise, the number of people forming households in the US has finally returned to a more normal pace. Housing production, however, has not. Our 2019 State of the Nation’s Housing report documents how the housing shortfall is keeping pressure on house prices and rents, eroding affordability for modest-income households in many markets. The 2019 report will be released in a live webcast today at 12:00 pm ET from the Federal Reserve Bank of Atlanta.

Several factors may be contributing to the slow construction recovery, including rising land prices, regulatory constraints, and persistent labor shortages. These constraints raise costs and limit the number of homes that can be built in places where demand is highest.

Despite these challenges, the report finds that the number of homeowners in the US continued to rise in 2018, while the number of renter households fell once again, a stark contrast to the increases of the 12 preceding years. Meanwhile, the share of households paying over 30 percent of their income for housing declined for the seventh straight year in 2017, but much of the progress was among homeowners, while cost burdens for modest-income renter households continued to rise.

To ensure the market can produce homes that meet the needs of a growing population, the public, private, and nonprofit sectors must address constraints on the development process. And for the millions who struggle to find housing that fits their budget, public efforts will be necessary to close the gap between what they can afford and the cost of producing decent housing.

Read the full report here:

 

https://www.jchs.harvard.edu/state-nations-housing-2019

June 25, 2019

Propylene Drops

US June propylene contracts settle at a 3.50-cent decline

Houston — June US propylene contracts settled at a 3.50-cent decline from May contract prices, trade participants said Monday.

 

June US polymer-grade propylene contracts settled at 36.50 cents/lb and chemical-grade propylene contracts at 35 cents/lb.

Market sources said that the June propylene contract settled in line with the clear majority, and that the decline was in line with market expectations.

The June declines followed lower spot prices in June compared with May. June polymer-grade spot prices have averaged 33.01 cents/lb FD USG, below the May PGP average of 38.94 cents/lb FD USG, according to S&P Global Platts data.

Domestic propylene inventory still remained long, despite declines in the five of the last six weeks.

US propylene stocks rose slightly the week ended June 14 after five consecutive draws, according to data released by the Energy Information Administration on Wednesday. Non-fuel use propylene stocks totaled 4.932 million barrels, up 63,000 barrels from a week earlier.

Despite the build, US propylene stocks remained below 5 million barrels for a third consecutive week, after remaining above that level since December. Moreover, last week’s inventory was still up by 2.234 million barrels from the same time a year earlier.

— Ali Oktay, ali.oktay@spglobal.com

— Edited by Jennifer Pedrick, newsdesk@spglobal.com

https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/062419-us-june-propylene-contracts-settle-at-a-350-cent-decline?utm_source=twitter&utm_medium=realtime&utm_content=petrochemicals&utm_term=news&utm_campaign=webed&utm_source=hootsuite&utm_medium=twitter&utm_term=plattspetchems&utm_content=a9ea4dc2-c770-442f-b534-e91ce6f6e46c&utm_campaign=hootsuitepost

June 25, 2019

Propylene Drops

US June propylene contracts settle at a 3.50-cent decline

Houston — June US propylene contracts settled at a 3.50-cent decline from May contract prices, trade participants said Monday.

 

June US polymer-grade propylene contracts settled at 36.50 cents/lb and chemical-grade propylene contracts at 35 cents/lb.

Market sources said that the June propylene contract settled in line with the clear majority, and that the decline was in line with market expectations.

The June declines followed lower spot prices in June compared with May. June polymer-grade spot prices have averaged 33.01 cents/lb FD USG, below the May PGP average of 38.94 cents/lb FD USG, according to S&P Global Platts data.

Domestic propylene inventory still remained long, despite declines in the five of the last six weeks.

US propylene stocks rose slightly the week ended June 14 after five consecutive draws, according to data released by the Energy Information Administration on Wednesday. Non-fuel use propylene stocks totaled 4.932 million barrels, up 63,000 barrels from a week earlier.

Despite the build, US propylene stocks remained below 5 million barrels for a third consecutive week, after remaining above that level since December. Moreover, last week’s inventory was still up by 2.234 million barrels from the same time a year earlier.

— Ali Oktay, ali.oktay@spglobal.com

— Edited by Jennifer Pedrick, newsdesk@spglobal.com

https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/062419-us-june-propylene-contracts-settle-at-a-350-cent-decline?utm_source=twitter&utm_medium=realtime&utm_content=petrochemicals&utm_term=news&utm_campaign=webed&utm_source=hootsuite&utm_medium=twitter&utm_term=plattspetchems&utm_content=a9ea4dc2-c770-442f-b534-e91ce6f6e46c&utm_campaign=hootsuitepost

June 25, 2019

Polyol Update

US H2 polyol demand likely to grow slower than expected

Source: ICIS News

2019/06/18

HOUSTON (ICIS)–Demand for US polyols slowed during the first half of 2019 when compared with the prior year and the second half of the year is likely to see a similar pattern of consumption, rising at a slower rate relative to 2018.

Photo by Design Pics Inc/REX/ShutterstockA deceleration in global economic growth has also weighed on polyol demand and this factor is likely to remain in place over the short term as several economists have voiced concerns over a possible global recession within the coming quarters.

The automotive industry has been slowing globally as trade tensions create uncertainty and amid stricter regulations in several countries.

Furniture and bedding demand within North America has also been sluggish for the past several months, although the industry is hopeful that mattress sales may find some support following a recent decision by the US government to impose anti-dumping duties on shipments from China.

Demand from the construction sector is likely to pick up during the third quarter before slowing in the fourth quarter, following normal seasonality factors. The construction season in North America was slow to start the year, which contributed to inventory build ups in a number of polyurethane intermediates.

On the supply side, polyol availability is anticipated to remain sufficient as the US market is structurally long. This dynamic is unlikely to change over the short term.

Pricing dynamics will continue to remain closely tied to movements in key feedstock markets.

Polyether polyols generally track the direction of upstream propylene feedstock costs, which may face some downward pressure in the coming months as propylene inventories remain sufficient while derivative demand has been sluggish.

24CC2623B9008121723EC56EAEE84EF6.jpg

Polyester polyols tend to follow the direction of diethylene glycol (DEG) feedstock costs.  DEG supplies may lengthen in the coming months on new capacity in the US.

BDA83CF06351F458A31EB868007D4DD4.jpg

Polyols are often reacted with isocyanates to make polyurethanes (PU), which are used to make mattresses, foam insulation for appliances (refrigerators and freezers), home and automotive seats, elastomeric shoe soles, fibres and adhesives.

Major US producers of polyols include Covestro, Dow, BASF, Huntsman and Monument Chemical.

Image above shows polyurethane foam. Polyurethanes are made with polyols. Photo by Design Pics Inc/REX/Shutterstock 

Focus article by Zachary Moore

https://www.icis.com/explore/resources/news/2019/06/18/10378180/us-h2-polyol-demand-likely-to-grow-slower-than-expected?utm_source=dlvr.it&utm_medium=twitter