PVC Industry Reshuffle 08 Years To Avoid

PVC production enterprises with resource advantages, scale advantages and recycling economic process will benefit from the increasingly competitive industries and expand market share.

The production technology of PVC in China is divided into ethylene method and carbide method. The capacity of calcium carbide method accounts for about 73% of the total capacity of PVC.

The quality of ethylene PVC is better, but it is affected by the price of crude oil. The raw material of calcium carbide PVC is cheap and has a strong cost advantage.

The long-term average price of international crude oil may be maintained at more than US $75, which will make the price of ethylene PVC high. Although the PVC production of domestic ethylene method is relatively small, it will still play a supporting role in the price of calcium carbide PVC.

PVC enterprises in the future ethylene industry will still face greater business pressure, while the PVC enterprises with calcium carbide routes will enjoy the price differentials caused by high oil prices.

The scale of domestic PVC manufacturers is generally small, the industry concentration is not high, compared with the international top 5 production enterprises 2 million tons or more, there is a big gap.

Domestic PVC total capacity continues to maintain rapid growth. In the 08 years, the country is expected to increase production capacity of 2 million 500 thousand tons, while market demand is relatively slow. The reshuffle of the whole industry will be inevitable.