The Thermoplastic Compounding Industry Continued to Grow in Asia

The thermoplastic compounding industry continued to grow in Asia and Latin America during the global recession, but the market was constrained in Europe, according to a series of reports by market research firm Applied Market Information (AMI). There are 5% fewer companies in AMI's new guide to thermoplastics compounding in Europe, and the researchers noted that the market shrunk by 1m tonnes between 2006 and 2009. "During the 2009 downturn compounders were more interested in minimising credit risk than seeking to preserve volumes or gain market share. In general terms this means that compounders responded to the recession by seeking to maintain or grow margins rather than chasing volume, " UK-based AMI said in a news release. "That the industry did not see more bankruptcies or fire sales is testament to their success in achieving this. " According to AMI, production of compounds in Europe recovered in 2010 and amounted to nearly 7.6m tonnes. Asia, on the other hand, showed strong growth – the new listing includes more than 1, 000 sites, up from 841 in AMI's previous guide. "While market growth in Asia stuttered as the financial crisis hit in 2008, the industry continued to expand through 2009, albeit modestly but grew very strongly during 2010. Output of compounds is believed to have been close to 1m tonnes for 2010, " AMI said. In Latin America, demand in 2010 grew by nearly 7% for the 100+ companies listed. AMI estimated the market size volume at just over 1.2m tonnes. According to AMI, colour compounds are widely used in Asia, while masterbatch accounts for a much smaller share of production. Engineering polymer compounds are more significant in Asia and Europe. Source: Plastics News