Pricing and Markets

June 28, 2019

CertiPUR and PFA in the News

Learn More About the Best Mattresses of 2019

Foam mattresses have evolved significantly in the last five years, with mattress manufacturers introducing proprietary foams that integrate cooling gel pods, gel swirls, latex and plant-based ingredients. Foam can be engineered with an open-cell structure to improve breathability, addressing a common concern consumers express before purchasing a foam mattress – sleeping hot.

According to the Polyurethane Foam Association, more than 1.5 billion pounds of foam per year are produced and used in the United States. It’s a fast-growing mattress market, as well. “Most consumers are shocked by the research and technology that goes into today’s foam,” Rogers says. “When people think of a foam bed, they might imagine a block of foam, and that’s not how it is. There are many different layers – a support layer, a comfort layer, some include latex or gel.”

Get a feel for the cross section of a foam mattress before making a purchase. This construction “view” illustrates a foam mattress’s capabilities. Foam mattresses often incorporate three layers: a top comfort layer, a transition layer of foam that might include cooling properties, and a high-density support foam base.

Foam comfort level is basically determined by density, firmness and resilience. Foam density is related to its construction and affects its ability to provide long-lasting support, with higher density related to firmness and more support. The Polyurethane Foam Association says that firmness is measured using the force in pounds required to indent a foam sample by 25% of its original height to get the indentation force deflection, or IFD. Firmness and density are not the same, though higher-density foams are often firmer. As for resilience – a springy feel – this is gauged by dropping a steel ball onto foam and measuring the rebound height. Foam resilience ranges from 20% to 80% rebound, according to the foam association.

Is a foam mattress for you? “Foam does best for people who like the hug or cradle feel vs. a floating-on-top feel,” Magnuson says. Foam mattresses have little, if any, bounce. While cooling gel-infused foams help prevent heat entrapment, other mattress types like innerspring sleep cooler than memory foam. “Foam has the least airflow capability,” he says.

Foam is a petroleum-based product, so consumers might want to seek out foams that are certified by the nonprofit organization CertiPUR-US to not contain ozone-depleting materials, phthalates, formaldehyde or heavy metals, and that are low in emissions of volatile organic compounds, or VOCs. “We have an aggressive compliance effort, and we urge consumers to use our website as a guide,” says Helen Sullivan, communications counsel at CertiPUR-US. She says people’s greatest concern about foam mattresses is whether they are low-VOC. All of the Best Foam Mattresses of 2019 contain certified CertiPUR-US foams.

Read more here:  https://www.usnews.com/mattress

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

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