An Overview of the Global Market for Aliphatic Polyester Polyols

PU Flexible Foam - Slabstock IAL Consultants is pleased to announce the publication of its latest report for the polyurethane industry, analysing the consumption of adipate-based, aliphatic polyester polyols, within the major end-use markets across the world. Figures are based upon 2001 production of polyurethane products and associated polyester polyol consumption.

Total global production capacity of these polyester polyols is reported to be in excess of 1.1 million tonnes, accounting for nearly 25% of world's total polyurethane polyol capacity, which is estimated to be 4.8 million tonnes.

Geographical coverage of this report includes data for production and consumption in the following major markets:

• Western Europe
• Central & Eastern Europe
• North America
• South America
• Asia-Pacific (inc. Japan & China)
• Middle East & Africa

This report reviews the consumption of polyester polyols by the following major end-use markets:

• PU Flexible Foam - Slabstock & Moulded
• PU Elastomers - Solid Microcellular & TPUs
• PU Coatings
• PU Adhesives & Sealants
• Synthetic Leather

Published figures and industry estimates for production of end-use products are given where available, in order to substantiate market figures for polyol demand.

Brief technical and commercial information is provided within the report for each end-use market. A directory listing the main raw material producers and formulators of polyester polyols and systems is also included.

Major end-users are listed and when known, figures for their estimated production levels and associated polyester polyol consumption are given.

Market Trends and Influences

• Production of these polyols in Asia in one of the fastest growing sectors in the polyurethane industry. Demand in the region is driven by use in synthetic leather and shoe soles, with many producers having captive polyol production
• The adhesives, sealants, paints and coatings industries are largely supplied by systems houses, some of whom have an in-house supply of polyester polyols. The quality of the polyols supplied to these applications is critical and demands higher prices.
• Between 1998- 2000 the aliphatic polyester polyols business was profitable with profit margins of around 10%, however, the material is now more or less a commodity with margins well below 5%. The low profit margins are expected to squeeze some of the smaller independent producers out of business.
• All polyols manufacturers are looking to increase sales volumes and reduce their fixed costs. This trend started in the slabstock sector and has now spread to the footwear sector
• Polyol prices bear little connection to raw material and manufacturing costs, they are dictated by the large foam producers who are in turn under the control of their customers in the furniture, construction, appliance and automotive industries
• Production of polyester foam in Asia remains limited to more technically advanced countries such as Japan and South Korea, however, the large and growing demand in the disposable nappy and bra markets is expected to ensure production starts in China in the near future

1. Introduction

2. Executive Summary

3. Global Production of Polyester Polyols

Production Capacity in Europe

Production Capacity in the Americas

Production Capacity in Asia-Pacific

Trends and Issues Affecting Production

4. Global Consumption of Polyester Polyols

PU Flexible Foam:

- Technical Background

- Major Global Producers of PU Flexible Foam

- Market Trends and Influences

PU Elastomers:

- Technical Background

- Major Global Producers of PU Elastomers

- Market Trends and Influences

PU Coatings:

- Technical Background

- Major Global Producers of PU Coatings

- Market Trends and Influences

Synthetic Leather:

- Technical Background

- Major Global Producers of Synthetic Leather

- Market Trends and Influences

5. Directory of Polyester Polyol Producers

Europe

The Americas

Asia-Pacific

6. Sources of Information