Hottest China will dominate the world PVC market i

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In 2011, China will dominate the world PVC market

according to Houston, Texas, the United States, a large number of new production capacity in China will rush to the world PVC market in a short time

China's production technology of using coal instead of ethylene as PVC raw material has greatly increased domestic production capacity, and its PVC production capacity will reach 14.5 million tons by 2011. By then, the PVC production capacity of the whole Northeast Asia will exceed 20million tons, more than twice that of any other region

the world petrochemical conference hosted by chemical market associates Inc. was held in Houston, Texas, USA from March 21 to 22. Market analyst Steve Brien said at the conference: China is the source of a large number of new production capacity. Brien is the global head of chlor alkali and vinyl for CMAI, headquartered in Houston, USA

brien added that although the growth was mainly from pipes and accessories, almost all end uses showed strong growth. By 2011, China will basically achieve full self-sufficiency in PVC

Brien said that more than one billion people in China need more goods, services and infrastructure. To sum up, China has a greater demand for long-term durable goods such as PVC

John Cunningham, vice president of European olefin business of Houston based DeWitt Co. Inc., predicts that China's PVC consumption will account for 25% of the world's total production capacity by 2010, far higher than 5% in 1990

DeWitt company held the world petrochemical conference in Houston from March 20 to 22. Cunningham said at the conference that China has comprehensively increased PVC production capacity since 2000 and strives to meet the huge domestic demand before 2005

in the past, China has always been the world's largest PVC importer. In, nearly half of PV used in China were imported with a cap weight of 7gC. In, China imported more than 1.8 million tons of PVC materials from abroad every year

Brien said that in, 90% of new PVC plants in China will be completed and put into operation, so that the fusion manufacturers of PVC production system in other Asian countries whose base materials are glass fiber composites and modified spunbonded products have to reduce production or explore new markets in Central Europe and India

China uses calcium carbide acetylene technology with coal as raw material to produce PVC, which makes it very competitive when using self-produced raw materials. However, Brien warned that the decline in energy prices would wipe out the advantages of coal raw material technology, while traditional ethylene raw materials are made of crude oil or natural gas. He said that the oil price of about $45 (350 yuan) would reduce the production of PVC based on coal to the cash cost

in China, some PVC produced from coal also has quality problems, and some PVC is grayish white in color or has material defects similar to fish eyes

Brien said: Nowadays, the quality of PVC made in China is polarized, and the degree of quality depends on the manufacturer itself. Some materials are difficult to meet the specified standards, and some materials have not been removed by steam, and the residual vinyl chloride monomer components have not been removed

Cunningham also listed other risks brought by China's use of coal raw material technology

converting coal into PVC raw material VCM consumes a lot of electricity, and the cost of electricity accounts for nearly half of the total production cost. At the same time, China's power demand is growing rapidly, and the government still restricts power supply from time to time. Brien added: therefore, as long as the government controls electricity and electricity prices, the production cost of VCM will be immediately affected

Cunningham said that the transportation cost is also a big challenge to the competitiveness of enterprises if the experimental machine itself cannot support and is bent, and the test cannot produce the correct results. In a vast country like China, the transportation of raw materials and finished products will add heavy expenses to the originally favorable production costs. In addition, China is vigorously improving the environment to meet the 2008 Beijing Olympic Games, and coal pollution will also cause concern to the government

brien said that in, all the new PVC production capacity in China will eventually make it difficult for Asia to implement it in large areas in real buildings? The author interviewed some construction enterprises, and the profit space of continental raw materials has shrunk

the same situation will recur in North America, but the range is not as large as that of China. The new PVC production capacity in this region has exceeded 907000 tons. Shintech Inc. will expand its capacity by 590000 tons by 2008; Georgia Gulf Corp. will add 204000 tons of capacity by 2009; Formosa Plastics Corp. USA will also increase production by 179000 tons by 2010. Brien said that in this way, after the high profits in, the return on PVC investment in North America is expected to decline in. He said that the profit margin of the Western European market is also expected to decline

after the slow growth period in North America, it is expected that the price decline will increase the demand in the region in

Brien said: in 2005 and 2006, the final products made of rigid PVC in North America were impacted by imported products, especially wires, cables and soleplates. The size of these markets has shrunk, but demand has not increased. High resin prices in the United States and Canada have also forced finished product manufacturers to raise prices

Brien said: the PVC market in North America is still quite good, but its growth rate is not as fast as usual

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