China imported approx 425,000 tons of Polyvinyl chloride (PVC) in the first six months of 2008, representing a 19% drop in PVC imports for the corresponding period last year. China's total PVC imports in 2007 totalled to over 1 mln tons.
This figure seems quite unattainable in the current year, as imports are estimated to dip below 1 mln tons as demand gets affected on account of economic uncertainties and regulations clamped on the chlor-alkali industry for the Olympic Games. In addition, the economic downturn in USA-China's major consumer of PVC end products, has affected China's consumption of PVC. Rising oil and feedstock costs continue to exert pressures on the processing industry, rendering smaller players out of business. Adding to the woes of the processors is the imposition of lending limits by Beijing, limiting the capacity to fund new purchases of raw materials.
This will be the first time in ten years that the country's import figures have dipped below the 1 min ton mark. This is also that first time that rising PVC prices are not an indication of strong demand and a robust economy.
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}