Lately Global PVC Market has Seen Annual Growth of Around 4%27 Aug 2010 • by Natalie Aster
Polyvinyl Chloride (PVC) is a globally manufactured product, produced by over 100 companies in approximately fifty countries. Practically all incremental capacity during 2005–2009 was installed in China, and to a lesser extent, India and the Middle East.
PVC market is being affected by major changes, including rising feedstock and distribution costs, the global economic crisis, the substitution of biopolymers and polyethylene terephthalate for polyvinyl chloride and the growth of both demand and production in China.
About 70% of world consumption of PVC is for pipe, fittings, siding, windows, fencing and other applications. It has increasingly been used as a replacement for traditional construction materials such as wood and metals, so its growth has been above that experienced by the overall construction industry. In industrialized countries, demand will be strong for piping and fittings, especially for telecommunications and natural gas. In the developing world, PVC pipe will grow rapidly, particularly for infrastructure for drinking water, sewage and drainage. Other leading applications for PVC are siding, windows, fencing and packaging sheet.
PVC consumption is highly dependent on the construction market, the demand on the PVS markets has remained weak in 2009 following the collapse in consumption experienced in the second half of 2008 as the weak economic outlook continued to restrict activity within the key construction sector. Demand for flexible PVC has declined in the industrialized world, but continues to rise in certain countries.
During the past few years, the global PVC market has seen growth of around 4% per year. Growth rates on the developed markets had been slipping as these markets matured while stronger demand growth has been seen in central and eastern Europe as well as Asia, in particular China and India. Future PVC projects are planned in a number of countries. Major capacity will be introduced in 2010 mainly in Asian region.
The major concerns for the worldwide PVC industry are presented today by health and environmental issues, and even product image itself. Solid waste disposal and the potential for recycling are among the major issues facing PVC and other plastics today. PVC forms dioxins and other potentially harmful compounds. PVC producers, especially in Europe, have been developing methods for recycling. In addition, some large retailers are requiring suppliers to use non-PVC packaging because of recycling concerns.
More information on the global PVC market may be found in the report Polyvinyl Chloride (PVC): 2010 World Market Outlook And Forecast recently published by TD The Market Publishers, Ltd.
Source: MarketPublishers, Ltd.