China's PVC exports on the rise

20-Sep-05

In September 2003, the Chinese Ministry of Commerce imposed anti-dumping duty on the import of PVC from USA, South Korea, Japan, Russia and Taiwan Province. This led to the rapid growth of PVC production in China, from 4.4 million tons in 2003, to 6.6 million tons in 2004. China continues to attract foreign investments in PVC projects, including Tosoh of Japan, LG Chemical from South Korea and Taiwan's Formosa Plastic Group. PVC production in China is estimated at 9.8 million tons this year, while domestic consumption of PVC will only be 7.8 million tons. This domestic oversupply has led to fiercer competition in the market and domestic PVC producers have to put their products onto international market. Statistics from north China's major ports show that the export PVC through the port has redoubled in recent years. In H1-2005, the port exported 5,944 tons of PVC valued at US$4.57 million, up 26.7 times since 2004 Rising exports have made it mandatory for the PVC producers to raise their technological level so as to improve the quality of their exports. Currently, more Chinese producers adopt the calcium carbide method instead of ethylene method in PVC production. China needs to encourage the use of the ethylene method, which produces high-quality products with low-energy consumption and no pollution.