PU demand seen firm in Q2 furniture mkt - trader

09 April 2008 18:36  [Source: ICIS news]

HOUSTON (ICIS news)--US polyurethane (PU) markets could get a shot in the arm following the world’s largest annual furniture trade show this week in High Point, North Carolina, a trader said on Wednesday.

Despite concerns about the impact of a slowing economy on consumer goods demand, sources said most attendees were optimistic that the prospect of higher prices in the third and fourth quarters discussed at the show would drive consumers to purchase more flexible foam PU products during the second quarter.

“If there is a pickup in demand it will come after this show,” the trader said.

US polyurethane blenders and foam manufacturers have seen margins squeezed in recent years by high-priced raw materials and difficulty passing costs on to consumers.

Producers of polyether polyols – one of the main chemicals used in polyurethane production – have seen feedstock propylene oxide (PO) prices rise twice as high as polyol values over the past two years, according to data from global chemical market intelligence service ICIS pricing.

The bi-annual trade show brings in 85,000 market participants every six months – including 90% of US retail furniture buyers, said officials from the High Point Market Authority.

For more on isocyanates and polyols, visit ICIS chemical intelligence

By: Landon Feller
+1 713 525 2653

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