PVC in China

In general, PVC divides into soft and hard products, in which soft PVC products accounted for 40.8% of China's total PVC consumption and hard products take rest of the all as per a Research and Markets. In terms of the application, the application of PVC is relatively dispersion, in which sectional materials of doors and windows accounts for 22.9%, tube stock takes 13.3% and diaphragm accounts for 12% of the total. The Chinese PVC is produced by the method of calcium carbide mostly, which accounts for 75% of the total output; ethylene process accounts for 22% of the total, and mainly produced in Shandong, Tianjin and other coastal cities. But, in the most of other countries, 65% PVC is produced by the method of ethylene. In terms of the development of China's economy and real estate industry, the demand of PVC has been a rapid growth. The output of PVC from 5.03 million tons in 2004 rose to 9.72 million tons in 2007, an average annual compound growth rate of 23.57%, significantly higher than the GDP growth rate. In 2008 affected by the global financial crisis, the PVC production slipped to 8.82 million tons. For a long time, China's PVC self-sufficiency rate has not reached 100%, along with the strong domestic demand, the domestic PVC production capacity is relatively lagging behind the demand, but after the domestic production capacity gradually released largely, the self-sufficiency rate reached in a high level, some months reached 90%; but affected by the global financial crisis, the production capacity had a relatively surplus, and the collapse of crude oil prices led to a negative affect for China's calcium carbide process PVC production cost, operating rate dropped drastically and PVC self-sufficiency rate has been dropped. But, along with the rising of global crude oil price, the Chinese PVC production enterprises will gradually reopen and the self-sufficiency rate will start to rise. Generally, in the long time PVC market, an economic cycle normally should be 3-4 years. From 1993 to now, PVC market has been encountered five cycles with prosperity and recession. Presently, China's PVC industry is in a mature period with high-cost.
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