Worldwide demand for polyvinyl chloride (PVC) is forecasted to grow at an annual rate of 4% over the next five years, according to CMAI. In recent years, China reversed its position of a net importer and saw an explosion of capacity additions, 90% of worldwide new capacities were built there in 2004-2007. Traditional exporters to China like Japan, Korea and Taiwan will have to find new markets or rationalise capacity.

“Hanwha Chemical, plans to build a won (W) 360bn ($384.2m) polyvinyl chloride plant (PVC) in eastern China for start-up at the end of 2010… Although China’s PVC output, mainly in northern and western areas, has exceeded demand, logistics problems made it difficult for products to be transported to the east, the spokesman said.” 
ICIS news, 14 Jan 2008”.

“LG Chem aims to expand PVC production at its Tianjin, China plant to 400,000 tonnes per year by 2008” Reuters, Sep 6, 07’

Strong demand and shortage of local supply make the Middle East and India major target markets for Asian exporters. Middle East’s demand growth is projected to be above 10% this year, with Saudi Arabia expected to display the strongest growth of 13-15%. India is also expected to have double digit growth with volume reaching 1.4m tonnes for this year ending first quarter.

The main demand drivers in the Middle East and South Asia have been the booming construction, water supply and sanitation sectors. Wire and cable grade PVC for telecommunications sector and PVC films for pharmaceutical packaging will also contribute to the healthy growth in these two regions.

Ethylene prices have been rising sharply as a result of unrelenting crude prices, causing margin squeeze for PVC producers. This is further complicated by increasing freight costs. PVC producers are confident of achieving price hike as demand sentiments improve starting from January this year bolstered by supply shortfall due to turnarounds. 

All this and more market trends and drivers will be discussed at CMT’s 8th Asia/China
Chlor-Vinyl Conference. Top panel of speakers will discuss the vital issues affecting the chlor-vinyls chain including: 

• Updates on capacity additions: Ethylene vs. Carbide route
• Production cost and environmental concerns – impact on PVC markets
• Chlor-alkai market outlook
• Market focus on: China, India, Middle East & Russia
• Demand drivers - application growth in: Wire & Cable, Window Profile
and Plastic Pipe 
• Implication of reduction in VAT refund on   the industry

Mark your calendar and register with your team.

You Will Network With
• CEOs • Regional Directors • Corporate Planners • Business Development Managers
• Marketing Managers • Project Directors • Chemical Analysts • Investment Analysts
• Researchers • Senior Managers from the Chlor-Alkali/Vinyl Acetate, EDC/VCM/PVC Industry, Petrochemical Trading Firms, Engineering firms, Technology Licensors, Compunder, Plastics Processing Companies, Plasticisers, Statblisers and Additive Producer, Financial Institutions, Terminalling, Storage & Shipping Companies.