Bed Production Disruptions Expected This Month Amid Naphtha Crisis

The bed industry is on thin ice as the war in the Middle East drags on. With growing difficulties in securing key raw and subsidiary materials, some companies fear production disruptions as early as the end of this month. Firms are scrambling in every possible way to secure supplies, but progress has been slow.
According to industry sources on the 5th, one bed manufacturer expects imminent disruptions in the supply of sponge used in mattresses if the Middle East conflict continues. The company has been producing mattresses with sponge supplied by a subcontractor, but as Naphtha supplies tighten due to the war, obtaining sponge is becoming increasingly difficult.
The sponge used in mattresses is made from polyurethane foam, which is processed from Naphtha.
Currently, Naphtha is in the midst of a severe supply crisis due to the impact of the war. Data from the Ministry of Trade, Industry and Resources’ Raw Material Price Information show that as of the 20th of last month, the unit price of Naphtha surged to 1,171 dollars per ton, an 83.0% jump from the end of the previous month.
A company representative lamented, "Once this month passes, we could start seeing problems in the actual production of finished products," adding, "Our sponge supplier is telling us that at this rate, they cannot guarantee inventory after the end of April."
Until now, there had been no issues with Naphtha supply, and because sponge is bulky, the company had not considered building up large inventories. The sudden outbreak of war has effectively thrown an unexpected obstacle in their path.
Even if manufacturers manage to secure raw materials, suppliers are pushing for price increases, leaving bed companies in a bind. Over the past few years, the industry has already been struggling as a slump in construction and real estate has chilled consumer sentiment. With sales and operating profits already down, any further rise in raw material costs will inevitably erode margins unless companies raise retail prices.
honestly82@fnnews.com Reporter Kim Hyun-cheol Reporter