The Urethane Blog
September 16, 2024
Open Letter to All Spray Foam Applicators and Related Businesses
Compliance with Antidumping Duties and Tariffs for Spray Foam Products
Since July 2018, the United States has imposed a 25% tariff on several spray foam raw materials imported from China, including isocyanates, polyether polyols, fire retardants (such as TCPP), surfactants, and catalysts. Recently, the U.S. International Trade Commission (USITC) launched investigations (701-TA-721 and 731-TA-1689) into imports of alkyl phosphate esters (including TCPP fire retardants) from China, for price dumping (anti-dumping & counter vailing actions have been requested by certain EU and US producers of TCPP) and further the USITC is now investigating several companies suspected of importing TCPP and other tariffed goods without the appropriate duties or tariffs being paid.
As we understand, a decision on these investigations is expected by either the end of September or mid-November 2024. The outcome of which could have a significant impact on the spray foam industry. Importers involved in these investigations may face increased costs or restricted supply of these materials. Furthermore, homebuilders and general contractors (GCs) that require contractors and their products to comply with all relevant national, state, and local laws, including tariff and duty regulations, may disqualify certain foam products for not being in compliance.
To ensure your compliance and avoid potential issues, we suggest obtaining a verification statement from your foam suppliers, that the products you have been purchasing since 2018, as well as those you are currently buying, adhere to all applicable duty and tariff regulations.
Quadrant’s Commitment to Compliance
Quadrant Performance Materials has and will continue to adhere to all relevant duties and tariffs for any imported materials used in our spray foam systems and other products. We verify and ensure the payment of these duties and tariffs, to maintain transparency and compliance.
If you have any questions or need further clarification on this issue, please do not hesitate to contact us.
Quadrant Performance Materials
200 Industrial Blvd, McKinney, TX 75069
(972)542-0072
September 15, 2024
Tempur Sealy gains amid report of divestiture buyer in Mattress Firm deal
Sep. 13, 2024 3:26 PM ETTempur Sealy International, Inc. (TPX) StockBy: Joshua Fineman, SA News Editor
Tempur Sealy (NYSE:TPX) rose 4% amid a report that a potential buyer for the divestiture package for its deal with Mattress Firm has been identified before a November trial from the Federal Trade Commission challenging the combination.
The buyer has met with the FTC, according to a CTFN report on Friday, which said it didn’t know the identity of the bidder.
It wasn’t known if the proposed remedy package has been or will be altered, according to the report.
The FTC sued in early July to block mattress maker Tempur Sealy’s (TPX) planned $4 billion purchase of retailer Mattress Firm. The regulator issued an administrative complaint and authorized a lawsuit in federal court to prevent the deal, alleging that Tempur Sealy — the world’s largest mattress supplier and manufacturer – will have the ability and incentive to “suppress competition” and raise prices for mattresses. The Commission voted 5-0 to authorize the lawsuit to challenge the transaction.
Piper Sandler analyst Peter Keith said in a July note that TPX will have no issue divesting 200 stores that may raise competitive concerns in specific markets.
Tempur Sealy (TPX) agreed to buy Mattress Firm in a $4 billion deal in May 2023.
September 12, 2024
Huntsman Appoints Douglas Brady as Its Spray Polyurethanes Foam Business President
September 11, 2024
Huntsman Corporation announced the appointment of Douglas Brady as president of Huntsman Building Solutions, its global spray polyurethanes foam business. Brady succeeds Simon Baker, who is leaving Huntsman to return to his home in England.
Brady has extensive knowledge in construction markets, with commercial and technical expertise in insulation, coatings, adhesives and sealants applications. He joined Huntsman in March 2018 with the acquisition of Demilec, a leading North American SPF insulation manufacturer. He went on to become vice president of global innovation and product management for HBS following Huntsman’s February 2020 acquisition of SPF manufacturer Icynene-Lapolla. Demilec and Icynene-Lapolla were integrated to form Huntsman Building Solutions, which is now the largest SPF company in the world.
“I’m excited that Doug has taken on the leadership of our spray foam business,” said Tony Hankins, Huntsman’s polyurethanes division president. “He has deep market expertise and a strong track record of success. Moving forward, we’re optimistic about the opportunities for the business. We aim to expand spray foam markets, reduce energy costs and improve home affordability within the new building code landscape.”
Huntsman Building Solutions is a business unit within Huntsman’s polyurethanes division.
September 11, 2024
Adnoc to acquire chemical company Covestro for $16bn
By Reuters & Staff Writer
September 11, 2024
Abu Dhabi National Oil Company (Adnoc) is expected to make a formal offer to buy German chemical company Covestro AG.
The Financial Times reported that the 14.4 billion euros ($15.90 billion) offer will set up the state-owned energy producer to expand its overseas holdings.
The companies have been in talks since Adnoc made an initial informal offer in September 2023.
In June Covestro confirmed it had started “concrete negotiations” over a $12.5 billion offer, with €62 ($67) a share as a starting point for the negotiations.
Covestro, which makes plastics and chemicals for construction and engineering, said at the time it was opening its books to Adnoc because an agreement on core aspects including Covestro’s growth strategy may be reached.
- Adnoc’s acquisition strategy could lead to something major
- Adnoc makes final bid for German chemicals maker
- Covestro begins formal talks with Adnoc on its $12bn bid
A spokesperson for Covestro said the company had read the FT report with interest and did not comment further. Adnoc declined to comment.
Covestro generated sales of €14.4 billion in 2023. At the end of that year the company had 48 production sites worldwide and employed approximately 17,500 people.
https://www.agbi.com/energy/2024/09/adnoc-to-acquire-chemical-company-covestro-for-16bn/
September 10, 2024
Customs broker urges importers to delay their shipments to avoid East Coast strike
Bobby Dalheim //Senior Editor of Case Goods and Global Sourcing//September 9, 2024
NORFOLK, Va. – With a potentially massive strike looming over East Coast ports in early October, one customs broker and logistics provider is suggesting importers delay their shipments.
“Leading up to the U.S./Canada East and Gulf Coast labor contract expiration on Sept. 30, there is a lot of uncertainty throughout the market,” said Rachel Shames, vice president of pricing and procurement for CV International, in a blog post. CV is a member of the American Home Furnishings Alliance and often does business with furniture importers.
“There’s been no progress in labor negotiations over recent months, and it seems likely that a labor disruption will occur effective Oct. 1,” she said. “It’s also possible we will see port work slowdowns begin before the official contract expiration date. The duration of any disruption or strike is unknown; hopefully any action will last only a few days, if that long.”
As such, Shames says shippers should be prepared for delays in the coming weeks.
“If shipments can be delayed until later in October or November, it would be a good idea to consider postponing until the market settles,” she said.
Container rates to both U.S. coasts have been dropping steadily for the past six or so weeks but remain volatile. An increase in West Coast rates is expected as East Coast importers begin to shift away from the East Coast in anticipation of the strike.
“Levels have been softening gradually since July, but we expect West Coast rates will increase as of Sept.15,” Shames said. “East and Gulf Coast from Asia may continue to decline, but with the potential for major congestion, we could see extra charges announced. There is still a wide range of rates in the market: FAK levels remain relatively strong compared with fixed contract rates, but carriers are still offering special spot deals for specific sailings (although many of those sailings are filling up fast, and cargo booked on those low deals is likely to roll).”
As of early September, both parties involved in the strike – the International Longshoremen’s Assn., which represents 85,000 dockworkers, and the U.S. Maritime Alliance (USMX) – still indicate that a successful negotiation is far off. The primary issue of contention seems to be automation, as the ILA has alleged that certain ports are using an auto gate system, which allegedly violates the current contract.
“The ILA most definitely will hit the streets on Oct. 1 if we don’t get the contract we deserve,” said ILA President Harold Daggett in a recently surfaced video. “Mark my words, we’ll shut them down.”
In a press release dated Sept. 5, the USMX said the ILA continues to “strongly signal it has already made the decision to call a strike” and that it hopes the ILA “reopens dialogue.” The ILA issued a letter to its members as a response, calling the USMX release “propaganda” and explaining its stance in detail.
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