Global PVC consumption in 2006 attained a level of 33.5 mln tons, growing by 1.8 mln tons. However, the total capacity addition in 2006 was about 2.3 mln tons, while capacity addition in 2005 was about 3 mln tons. The World consumption pattern is shifting towards Asia. Asia alone accounted for 40% of the total consumption of PVC in 2006. China has a very dominant role with almost 65-66% of the Asian consumption and about 27% of the World consumption. Naturally, China has a tremendous influence on the World trade of PVC.

In 2006, China reached PVC capacity of about 9 mln tons, most of which is based on carbide as feedstock. The carbide route has helped China to match its cost quite impressively to that of the Middle Eastern region. PVC consumption in China in 2006 matched production at 9 mln tons. In fact, China exported almost half a mln ton of PVC in 2006. Interestingly 20% of this export was made to India. China will continue to export PVC until at least 2009, if not until 2010. China leads the world in both production and consumption of polyvinyl chloride (PVC), and demand will rise 8% annually through 2010. Extruded PVC will gain market share. Construction will remain the largest application while packaging uses will surpass the consumer and institutional segment to become the second largest PVC market.

North America has been steadily losing its share to Asia and more so to China, as its share in 2006 dipped to only 21%. Europe is also losing its share in global consumption. 2007 and 2008 will continue to have capacity additions to the tune of over 2 mln tons globally. The capacity addition in the next 5 years will slow down to a level of 1-1.5 mln tons from 2009. The massive capacity additions in China brought the capacity in Asia Pacific up to 50% of the global total in 2006. Capacity will continue to develop to serve the booming construction markets in Asia, increasing the region's proportion of global capacity over time. Capacity in developed regions will remain comparatively stable, whilst developing regions such as Africa and South America will see higher growth. The most significant developments outside Asia will be in the Middle East, where major capacity developments will occur to serve the local supply defecit and develop an export position.