subject: Future Of Pvc And Pvc Compound In China----aarkstore Enterprise [print this page] China, with its great development of PVC, captures about 30% global PVC output and consumption and it is the largest manufacturer and consumer of PVC in the world.
Different from most overseas countries, China adopts both of calcium carbide method and ethylene method, since China has abundant calcium carbide resource. In 2007, PVC by calcium carbide method captures 72.65% of the total output in China.
As the 60%~80% production cost comes from raw materials cost, any price change of raw material will impart both method greatly. As price of calcium carbide is low in the past several years, Chinese PVC As the largest PVC manufacturer and consumer in the world, China captures about 30% of global PVC output and consumption at present.
Different from most overseas countries, China adopts both calcium carbide method and ethylene method, since it has abundant calcium carbide resource. In 2007, PVC by calcium carbide method captures 72.65% of the total output in China.
As 60%~80% of production cost comes from raw materials, any price change in raw material will greatly impart Chinas PVC production. In the past several years, Chinas PVC export has been rising with the low price of calcium carbide. But from July 2008, with the price fall of crude oil, the production cost of ethylene method has been lower than that of calcium carbide method, thus some Chinese PVC manufacturers have shifted to ethylene method.
The analysis of the gross profit of each production method in China during different periods will help you better understand how the raw materials impact the PVC production in China.
Though China is still a net importer of PVC and PVC compound, its import volume has reduced from 2003 greatly. Besides, the capacity growth rate has maintained around 30% in the past few years. With the continuous capacity expansion, China is likely to face overcapacity in the future.
The major driver of the increasing PVC and PVC compound output in China is the growing downstream demand. And the development trend of these downstream industries and their consumption of PVC and PVC compound are also disclosed in this report.
