Global demand for PU keeps growing.According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Dow Polyurethanes, global demand for polyurethanes (PUR), both in traditional market segments and in new applications, continues to grow. Despite the economic crisis in the Pacific, the compounded growth rate for polyurethanes is estimated at 4% per year, driven by the mature markets of the U.S. and Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , and by the emerging economies of Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. and Latin America. In the U.S., the PUR industry traditionally grows on an average of 2% above the GDP GDP (guanosine diphosphate): see guanine. . Dow estimates that global PUR consumption in 1998 will be approximately 15 billion pounds (6.8 mmt including polyester polyols). Europe and North America remain the biggest markets for polyurethanes, each consuming approximately 35% of the global output. Latin America and the Pacific account for about 15% each. "Latin America continues to be an area of increased growth," says David Fischer, global business manager, polyols, Dow Polyurethanes. Mark Tan, global business manager, isocyanates, Dow Polyurethanes, adds, "The increasing purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. of many Latin American nations fuels demand for polyurethanes-based consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and , such as mattress bedding, furniture, appliances and automotive products." Additionally, PUR products, such as foam, allow for very little non-generic substitution, which further reinforces their position in the market. As a result, flexible foams are the largest emerging force in the region. Fischer notes, "Europe and North America also continue to be strong markets for flexible foam. In addition, a significant niche here belongs to rigid spray foams, with an annual growth rate of more than 10%, fueled by the building and construction industry. The growth in polyol production is estimated at 5% globally. Polyether pol·y·e·ther n. A polymer in which the repeating unit contains two carbon atoms linked by an oxygen atom. polyols constitute about 90% of industry use, and polyester polyols account for 10%. Global consumption of polyether polyols is approximately 6.5 billion pounds annually, with a market capacity ranging between 8-8.5 billion pounds. Paralleling the overall consumption of polyurethanes, the biggest outlets for polyether polyols exist in Europe and North America, with approximately 35% of global use each. "In the Pacific, the economic crisis has lowered the consumption of polyols to under 20%," Fischer says. Latin America accounts for 10-15% of global polyols consumption. "We see Latin America as a strong growing market in the long term," Fischer comments. |
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