06 October 2013 12:56 [Source: ICIS news]
BERLIN (ICIS)--Solvents distributors in markets such as glycol ethers (EGE) and propylene glycol ethers (PGE) are looking to speciality markets to compliment commodity grade trading, an EGE and PEG producer said on the sidelines of the 47th annual European Petrochemical Association (EPCA) meeting on Sunday.
“Specialities have benefits for distributors,” the producer said, in discussing whether or not solvents distributors are being squeezed out the spot commodities markets by producers targeting end-use consumers directly.
This is not the case, the producer said, as the spot market still needs distributors to serve the many small end-use consumers across Europe.
There have been questions previously as to whether or not there is still room for distributors in the spot markets, raised during the 2013 European Association of Chemical Distributors (FECC)’s annual conference in Hamburg, Germany, where delegates discussed the move away from commodity business.
The concern of distributors being edged out the spot market by producers appeared to be actualised by the exit of European chemicals disturber Bax Chemicals BV from the market in August, as the company decided to focus on its overseas export business because of the changes in the chemical trading and distribution market during recent years.
However, the distribution market still plays a key part in the spot EGE and PGE industries, and should look to speciality grades to compliment rather than replace commodity activity, the source said.
The EPCA meeting runs from 5-9 October.
($1 = €0.74)
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