Housing market crash cut US formaldehyde demand by 35%

09 December 2009 19:03  [Source: ICIS news]

MIAMI (ICIS news)--The global economic downturn and crash in the US new automobile and home construction market pushed formaldehyde demand down by 35% over the past four years, an industry leader said on Wednesday.

“The economy crashed and took formaldehyde demand with it,” said Ralf Yopb, commercial director of Arclin.

The US housing and auto markets account for 60% of formaldehyde demand in the US, Yopb said.

Yopb estimated that North American capacity for formaldehyde derived from methanol was about 1.9m tonnes in 2009, down from 2.7m tonnes in 2005.

“[The year] 2005 was the peak of the US housing market,” Yopb said.

Yopb indicated that formaldehyde demand in 2012 may only reach 2007 levels.

“Another factor pushing demand down is that new houses are getting smaller … Americans are building smaller homes,” Yopb said.

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By: Steven McGinn
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