POLYMER DISTRIBUTION EUROPE
Distributors increase marketshare to 11% in 2011 / Sector continues to grow in importance / Top 10 groups account for half of pan-European distribution
Polymer distribution accounted for 11% of polymer sales in 2011 – equivalent to around 3m t of resin and representing sales of over EUR 6 bn, according to a recently published report “Polymer distribution in Europe” from market researcher Applied Market Information (AMI, Bristol / UK; www.amiplastics.com).
The sector has continued to grow and increase in importance within the polymer industry supply chain with sales through distribution channels rising ahead of the overall demand for polymer, despite the impact of the eurozone crisis and volatile pricing and supplies. AMI forecasts that distribution sales will advance at double the rate of that expected for underlying polymer demand growth over the next five years.
However, AMI said it expects sales growth to be markedly slower in 2012, with distribution volumes increasing at half the rate of the previous two years. Additionally, the distribution industry still has some way to go to recover the volumes lost during the 2008/2009 recession, with 2011 sales over 500,000 t lower than in 2007.
The researcher said polymer distribution is playing an increasingly important strategic role within the industry value chain, providing opportunities for polymer producers to cut costs, improve efficiencies and deliver better service and support to plastics processors. Rationalisation of the customer base by the polymer majors and the increased availability of resin from the Middle East and Asia have also contributed to these trends.
However, AMI said that distributors are facing a number of challenges, including increasing risks through poor customer credit ratings and volatile market conditions with rapidly fluctuating resin prices. There is also a trend towards suppliers preferring to deal with fewer distributor groups, which can offer international coverage rather than dealing with a number of individual local players – a strategy that favours pan-European distributors and puts regional players under increasing pressure.
These trends are driving industry consolidation with the leading groups expanding their international and pan-European coverage. Recent structural changes include Ashland’s polymer distribution business being acquired by Nexeo Solutions (see Plasteurope.com of 05.04.2011) and the sale of Azelis’ polymer distribution business to Gazechim Plastiques (see Plasteurope.com of 13.06.2012).
The top 10 groups account for just over half all polymer distribution sales by volume, although there are a number of other players that have the potential to emerge as new pan-European groups such as K.D. Feddersen, Ter Hell, Hromatka Group, Gazechim Plastiques and Omya.
The sector has continued to grow and increase in importance within the polymer industry supply chain with sales through distribution channels rising ahead of the overall demand for polymer, despite the impact of the eurozone crisis and volatile pricing and supplies. AMI forecasts that distribution sales will advance at double the rate of that expected for underlying polymer demand growth over the next five years.
However, AMI said it expects sales growth to be markedly slower in 2012, with distribution volumes increasing at half the rate of the previous two years. Additionally, the distribution industry still has some way to go to recover the volumes lost during the 2008/2009 recession, with 2011 sales over 500,000 t lower than in 2007.
The researcher said polymer distribution is playing an increasingly important strategic role within the industry value chain, providing opportunities for polymer producers to cut costs, improve efficiencies and deliver better service and support to plastics processors. Rationalisation of the customer base by the polymer majors and the increased availability of resin from the Middle East and Asia have also contributed to these trends.
However, AMI said that distributors are facing a number of challenges, including increasing risks through poor customer credit ratings and volatile market conditions with rapidly fluctuating resin prices. There is also a trend towards suppliers preferring to deal with fewer distributor groups, which can offer international coverage rather than dealing with a number of individual local players – a strategy that favours pan-European distributors and puts regional players under increasing pressure.
These trends are driving industry consolidation with the leading groups expanding their international and pan-European coverage. Recent structural changes include Ashland’s polymer distribution business being acquired by Nexeo Solutions (see Plasteurope.com of 05.04.2011) and the sale of Azelis’ polymer distribution business to Gazechim Plastiques (see Plasteurope.com of 13.06.2012).
The top 10 groups account for just over half all polymer distribution sales by volume, although there are a number of other players that have the potential to emerge as new pan-European groups such as K.D. Feddersen, Ter Hell, Hromatka Group, Gazechim Plastiques and Omya.
02.01.2013 Plasteurope.com [224197-0]
Published on 02.01.2013