The construction industry is the major driver of global PVC market owing to a wide range of applications in the household, commercial and industrial sectors. Improving infrastructure and housing conditions in the developing economies are expected to maintain the demand for PVC. Long-term demand for PVC depends on the renaissance of the construction markets in the urbanized economies. Demand remains moderate in Europe due to debt crisis along with depressed business climate and due to slow monetary recovery. Sluggish growth in construction industry in the large economies such as Italy, Germany and U.K. lead to stagnant demand in Europe. Owing to huge manufacturing facilities in China, Asia Pacific is expected to be the fastest and largest growing market for PVC. The collapse of the building and construction industry in North America was the major reason for stagnant demand for PVC in this region, as per Future Market Insights.
Polyvinyl Chloride has a wide range of applications, which include electric cables, pipes, unplastisized polyvinyl chloride for construction, furniture and clothing, healthcare and plasticizers among others. It exists in a wide range of consumer products that include bottles, credit cards, cling films and packaging among others and construction materials such as window frames, pipes, cables, flooring and wallpaper among a range of products. The PVC production costs are based on types of production expenses that include raw materials such as chlorine, ethylene and acetylene. In Asia Pacific, the PVC costs are highly influenced by PVC prices in China, hence, in addition to ethylene prices; acetylene is widely used in the production of PVC and therefore has growing importance in this region.