Reports indicate that unsighted growth of polyvinyl chloride (PVC) production in China in recent years has led to a over capacity, causing supply-demand imbalance.
In 2004, PVC production in China was 5.03 million tons, whereas consumption stood at 7 mln tons. This les to the mushrooming of domestically launched PVC projects.
After two years China's PVC production has grown by over 50%, the number of PVC firms increased from 70 to 90 and the total production is estimated to hit 11.5 million tons in 2006. China's PVC consumption in 2005 was estimated at only 8 million tons in 2005, showing an overcapacity in the sector.
What worried people most is that some regions and enterprises intend to expand their PVC production capacity in three to five years, ignoring the current situation in the sector. Many localities in central and western China are also planning to build new PVC production bases. Dalad Banner, Jungar Banner and Otog Banner, the calcium carbide production bases in north China's Inner Mongolia Autonomous Region, plan to build 500,000- to 1,000,000-ton PVC production bases. Work on construction of the first phase 400,000-ton PVC project launched by Shenhua Group has been started in Dalad Banner of Inner Mongolia Dalad Banner.
18-Jan-06 
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