Brussels – Europe's flexible foam makers are trying to juggle tight raw material supply with strong demand for product from the furniture and bedding industries.
A series of production turn arounds at Europe's TDI, MDI and polyol producers. Raw materials suppliers have invoked force majeure clauses for TDI.
A series of hurricanes that disrupted production in the US Gulf Coast has not helped the situation.
Ten Brink: This is the second time in three years
Commenting on the European situation, Bart ten Brink, president of EuroPUR said: 'This is the second time in three years that our industry has experienced severe difficulties in supplies of raw materials and extreme price instability. I really encourage the supply chain to think about security of supply.'
The scarcity is forcing flexible foam makers to give priority to complex supply chains, where many participants rely on a steady supply of products.
In the automotive sector, tightness in key raw materials could lead to stoppages at car factories, warned the trade body, Europe-Moulders.
'As if 2020 had not been difficult enough for the automotive supply chain, our members are experiencing difficulties in getting sufficient raw materials to honour their orders,’ it said. ‘If supply is not restored rapidly, there is a real chance that some foam producers will have to invoke force majeure too, which would have effects throughout the automotive supply chain.'
