Analysis | polymer distribution
Europe’s distributors rise to the challenge
Polymer distributors play an increasingly strategic role within the polymer industry value chain, providing opportunities for polymer producers to cut cost and improve effi ciencies while delivering better service and support to plastics processors. However, in an industry notorious for its slim margins operating in a low growth economy, the successful distributor needs to be rigorous in understanding the cost-to-serve and the value gained from its customers in order to ensure future survival and growth. The newly published sixth edition of AMI’s Polymer
Distribution in Europe report estimates overall offi cial distribution channels in Europe accounted for nearly 3.4m tonnes of resin sales in 2014, equivalent to 12% of the total market (this includes PE, PP, PS, ABS/SAN, PA 6 & 66, PBT, PC, PMMA and POM but excludes PET, PVC and EPS are these are not considered typically distrib- uted polymers). The AMI analysis shows that distribu- tors account for a high share of the engineering resin market (up to 40% for PBT, for example) but a much lower share in the commodity markets (typically around 10%) due to strong competition with traders, as well as the fact that polymer processors with larger accounts are often served by suppliers direct. Although engineering polymers bring higher margin
to distributors, due to the technical aspect of the processing and services needed it is commodities that
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Europe’s polymer distributors have had to accommodate signifi cant
economic and structural challenges in recent years but the sector continues to grow, writes AMI consultant Karla Vittova
drive the sale volumes, accounting for nearly 80% of sales by distributors in 2014. However, engineering plastics will undoubtedly drive the future value of polymer distribution and will record much stronger growth than standard polymers. In 2014, AMI estimates that European polymer
distribution accounted for revenues of approximately €7bn with the largest contributors to added-value being
polyolefi ns and polyamide. The overall growth in polymer demand has been running at less than 1% a year over the period from 2009-2014. However, volumes sold through offi cial distribution channels have grown well ahead of this at 3.4%/year over the same period. Polymer distributors have benefi ted from the slower growth in the underlying
December 2015 | COMPOUNDING WORLD 63
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