Current situation of PVC industry in the hottest w

2022-08-15
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The current situation of the world PVC industry

in 2001, the global PVC production capacity reached 33.13 million tons, the output was 28.78 million tons, the market demand was 28.82 million tons, and the supply and demand basically reached a balance. Since 2001, the world economy has been affected by the economic downturn in the United States, and the GDP has decreased from 4.2% in 2000 to 1.5%, a decline of 64.29%. This situation has also cast a shadow on the development of the global PVC industry

due to the economic downturn, the global oil demand has decreased, and the oil price has fallen sharply, which has reduced the production cost of producing PVC resin with ethylene as raw material. The internationalization of PVC market has solved the problem of resin backlog in developed countries. Because these large companies have advanced production technology, low double consumption of resin production and low raw material cost, they can be dumped to developing countries at low prices. During the world economic downturn in 2001, some large companies in developed countries have basically not been significantly impacted, production and consumption have basically maintained the level of 2000, and the domestic market demand of some large countries has increased slightly. However, in developing countries, especially in China, due to the backward production route of PVC and the high price of raw materials, many enterprises cannot compete with the international market, resulting in unsalable resin. China's PVC industry has suffered the most serious blow since the Asian economic crisis

I. North America

in 2001, the production capacity of PVC resin in North America was 8.5828 million tons, including 7.9968 million tons in the United States and 586000 tons in Canada. In 2001, the consumption of PVC resin in North America increased by 4% compared with that in 2000, reaching 6.5126 million tons, of which PVC consumed by hard products accounted for 75% and PVC consumed by soft products accounted for 25%. In the spring of 2001, due to the recovery of the U.S. construction market, housing consumption drove the domestic market demand in the United States. The construction industry is the largest market for PVC in the United States. PVC pipes, pipe fittings, door and window profiles and plates account for 70% of the annual consumption of PVC resin in the United States. The development of building materials market makes the consumption of PVC market in the United States rise steadily. At the same time, the decline in oil prices has reduced the cost of resin production. In addition, the domestic market is optimistic, and the export of PVC in the United States increased last year. The domestic resin market price in the United States has been stable at the price of $0.64/kg in 2000, and the resin price has risen to 0 in some months $77/kg

in 2001, the consumption of PVC pipes in North America was 2.889 million tons, an increase of 4% over 2000. See Table 1 for the consumption distribution of PVC in North America in 2001. It is estimated that it is particularly suitable to be a testing instrument for product quality control in production lines and laboratories. With the increase of PVC pipes, plates and PVC medical supplies in the United States, the market consumption of PVC will reach 6.0782 million tons by 2005, effectively driving the further improvement of the consumption level in North America

Table 1 consumption distribution of PVC in North America in 2001, 10000 tons

usage consumption year-on-year/% (2000)

PVC pipes 288.9 4

door and window profiles 26.4 3.9

wires and cables 26.5 3.5

export resins 57.02 120

in addition, since 2001, the domestic production capacity of PVC in the United States has been increasing, and the production capacity of West Lake has increased by 13600 tons/A; Bonden also increased its production capacity by 18000 T/A; Shin tech will add a production line of 600000 T/a PVC resin; Formosa also plans to increase the resin production capacity by 227000 T/a by 2003

II. Western Europe

in 2001, the production capacity of PVC resin in Western Europe was 6.192 million tons, the same as that in 2000, and the consumption of PVC was 5.875 million tons, an increase of 1% over 2000. PVC accounts for 67% of the consumption of hard products. The consumption of PVC resin for pipes and fittings is 1.654 million tons; Due to restrictions on the development of PVC bottles in Europe, PVC bottles consumed only 130000 tons of PVC in 2001, a year-on-year decrease of 22%. Table 2 shows the distribution of PVC resin consumption in Western Europe in 2001

Table 22 consumption distribution of PVC resin in Western Europe in 2001, 10000 tons

usage consumption year-on-year/% (2000)

pipes, pipe fittings 165.4 8.1

PVC profiles 135.5 4 4.9

PVC rigid films, sheets 65.4 -6

PVC bottles 13 -22

cables, cables 48.3 2.3

affected by low production profits and the Greenpeace movement, the production capacity of the PVC industry in Western Europe has been hovering. However, the increasing consumption, especially the huge demand for PVC windows, water delivery and drainage pipes in Europe, has added momentum to the development of PVC in Europe. Recently, Philips bank, together with Dongcao company and Mitsubishi company, will build a 180000 T/a PVC resin plant; The French chemical company Alfredo is also preparing to increase the production capacity of vinyl chloride monomer by 145000 T/A; Solvin (solvin, which merged all its PVC businesses outside Spain with BASF in 1998) will also increase the production capacity of vinyl chloride monomer and resin by 80000 T/A

III. Japan

in 2001, Japan's PVC production capacity was 4.366 million tons, of which 50% of the factories were located abroad, and its domestic production capacity was 2.731 million tons/A. Due to the downturn of the PVC market in Japan caused by the economic recession in Japan, Japan consumed 2.197 million tons of PVC resin in 2001, a year-on-year decrease of 9.1%, of which domestic PVC consumption was 1.522 million tons, a year-on-year decrease of 9.4%, and export resin was 675000 tons, a year-on-year decrease of 9.6%. The consumption of PVC for hard products was 816000 tons, down 11% from 2000, and the consumption of PVC for soft products was 421000 tons, down 10.3% year on year

in order to get rid of the continuous decline in domestic consumption caused by Japan's long-term economic recession, Japan exported a large number of PVC resins to China and other Asia Pacific regions. The sharp decline of PVC resin in Asia Pacific and China has also depressed the export volume of Japanese resin, which does not only refer to technology and product innovation

at present, Japanese production enterprises are restructuring to make the industrial layout more reasonable. In order to increase the competitiveness of Japan's PVC industry in the market and occupy a larger export market, some Japanese companies are planning to expand the production capacity of PVC resin. Including a PVC resin factory with an annual output of 500000 tons and good electrical performance t in a wide range of working temperature and frequency that is being expanded by Zhongyuan company of Japan; Japan Dayang ethylene company plans to add a PVC resin production line with an annual output of 650000 tons and expand a resin production line with an annual output of 675000 tons before 2005. If these projects start on schedule, they will have a significant impact on the PVC market in Asia

IV. Asia

China has become a major producer and consumer of PVC resin in Asia and the world. In 2001, China's PVC production capacity reached 4.235 million tons (except Taiwan, China), ranking third in the world, with 2.875 million tons of production, 2.43 million tons of imported resin, and the consumption of PVC exceeded 5 million tons, ranking second in the world

there are four PVC companies in Taiwan, China, namely China general plastics company, with a production capacity of 240000 T/A; Formosa Plastics Company (with 4 factories in Taiwan, China, China), with a production capacity of 1.337 million T/A; Pacific Plastics Co., Ltd., with a production capacity of 120000 T/A; Daxin company in Taiwan, China, China, with a production capacity of 250000 T/A; The total production capacity is 1947000 T/A. As Formosa Plastics Company is expanding an 80000 T/a resin production line, the total production capacity of PVC resin in Taiwan, China, China is expected to reach 2million T/A. the market will be in a situation of oversupply, and the resin will further expand its export to inland China

in Asia, in addition to Japan and China, India has also become a major producer and consumer of PVC, with an annual production of 883000 tons of resin. See Table 3 for PVC production capacity in some Asian countries

Table 3 PVC production capacity in some Asian countries is 10000 t/a

national production capacity national production capacity

South Korea 130 Malaysia 130

India 88.3 Philippines 88.3

Thailand 79.6 Vietnam 79.6

Indonesia 60.8 Pakistan 60.8

as Asian countries basically got rid of the impact of the Asian financial crisis after entering 2001, some PVC plants closed in the Asian financial crisis have begun to restart. Although the impact of the U.S. economic recession on Asia will continue for some time, from the perspective of world economic development, the Asian economy will still be a hot spot in the world, and the Asian PVC industry will continue to develop and become the world's largest PVC market. After 2003, driven by the economic recovery of the United States, the world economy will have a GDP growth rate of about 3.6%. The improvement of the economy will also promote the further development of global PVC production and consumption. It is expected that the global PVC production capacity will continue to grow at a rate of 4.2% in 2003

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