Polyurethanes growing at a 3.1% pace in N. America.

The North American polyurethane industry is projected to grow at a 3.1% rate through the year 2000, according to a study released by the Alliance for the polyurethane Industry.

The study, conducted every two years, analyzes PUR industry growth by material type, end-use applications and raw material consumption.

The report determined that the total consumption of polyurethanes in 1998 for all end-use applications in the U.S. and Canada was 5,824 million pounds. The study also states that the top five polyurethane end-use applications in 1998 were construction, transportation, furniture, carpet cushion and appliances.

Looking ahead into the next millennium, projected volume in 2000 in North America is 6,174 million lbs. - approximately double the number of pounds consumed over the past decade since usage was first tracked in 1989.

The report demonstrates that construction and transportation, the industry's two largest end-use applications, experienced growth rates of 12.2% (1,347 to 1,511 million lbs.) and 20% (1,095 to 1,314 million lbs.), respectively, from 1996 to 1998.

Overall, flexible polyurethane foams accounted for 42% of total polyurethane demand; rigid polyurethane foams represented 26%; and coatings, adhesives, sealants and elastomers accounted for 32% of total polyurethane demand.

To provide additional insight into polyurethanes demand in its entirety, coatings accounted for 9%; binders, 7%; elastomers, 4%; adhesives, 4%; sealants, 3%; reaction injection molded (RIM) polyurethane, 3%; thermoplastic polyurethane elastomers (TPU), 2%; and spandex fibers accounted for 1% of the total polyurethanes market.

Small end-use applications (less than 250 million lbs. in consumption) experienced an increase in polyurethane consumption from 1996 to 1998. Among the leaders were electronics, textiles and fibers, marine applications, and tanks and pipes. Footwear, however, experienced a 10% drop in consumption between 1996 and 1998.

Additional highlights from the study include the following:

* Flexible polyurethane foam (FPF) markets: 2,222 million lbs. (U.S.) - The greatest demand for flexible slabstock foam came from the carpet cushion (501 million lbs.) and furniture (451 million lbs.) industries. (Total carpet cushion volume was 1,016 million lbs. when all scrap was included.) Transportation applications required the most flexible molded foam (414 million lbs.). Auto interior applications were the largest users of all forms of flexible foam, demanding 800.8 million lbs. (combined U.S. and Canada) and representing 33% of the FPF market and 14% of the total PUR market.

* Rigid PUR/PIR foam markets: 1,505 million lbs. (U.S. and Canada) - More than 50% (856.4 million lbs.) of all rigid foam consumption in the U.S. and Canada was in the construction industry. Specifically, construction represented 57% of the rigid foam market, and 15% of the total PUR market. The average annual growth rate is 4%, and the highest growth area is decorative, projected at twice the industry average - 8% annually. Appliances follow at 275.2 million lbs., representing 18% of the rigid foam market and an annual growth rate of 3%. Packaging, tanks and pipes, transportation and marine applications accounted for the remainder of the PUR/PIR rigid foam market.

* Polyurethanes coatings market: 547 million lbs. (U.S. and Canada) - Construction was the largest coatings user at 164.2 millions lbs., accounting for 30% of the coatings market. Transportation was second largest at 157.1 million lbs., with 29% of the market. Furniture, electronics, machinery, appliances and other end-use applications follow. Demand by type is as follows: Two-part - 53%; waterborne dispersions - 15%; urethane alkyds - 13%; powder - 10%; moisture cure - 4%; energy activated - 4%; lacquer - 1%.

Overall, polyether polyols had the highest demand of all polyurethane raw materials in 1998 (1,931 million lbs.), with transportation as the leading application. Polymeric MDI was second with 1,301 million lbs. More than 50% of that demand came from the construction industry. TDI was third with 739 million lbs.; 65% of that demand was from the transportation, furniture and carpet backing industries.

The polyurethane products with the greatest demand for diisocyanates were rigid foam (787 million lbs.); flexible slabstock (644 million lbs.); binders and fillers (238 million lbs.); and flexible molded (196 million lbs.).

In summary, demand for flexible slabstock foam was the highest of all polyurethane products in 1998, with a total demand of 1,866 million lbs. Rigid foam was second with 1,505 million lbs., followed by flexible molded foam at 596 million lbs. and polyurethane coatings with 534 million lbs. RIM polyurethane was the only product to experience a decline in consumption, with a 5.1% drop.

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