PVC demand in China to get a boost from construction boom

Boom in China's construction industry has led to a rise in PVC demand in China, expected to grow at 8% pa, as per a report by Freedonia Group. The fast growth will take China's demand to 12 million tons in 2010 from consumption of 8.2 million tons in 2005. China's highly active construction sector accounted for 70% of PVC extruded products consumed in China in 2005, when consumption in China overtook that of USA. In 2005, China became the world's largest PVC market. A regulation in China will ensure increasing use of PVC in pipes, windows and doors, as China strives to reduce energy loss from buildings and to lower costs for production and maintenance. China's northeast region is experiencing the strongest growth in construction activity, leading to high demand for PVC. Another sector contributing to the growth of PVC is the the PVC packaging market, that is expected to replace the consumer and institutional market as the second largest market, replacing paper and metal and conventional application areas.