Vinyl Chloride Monomer (VCM) Global Supply Dynamics to 2020 - Production from Coal Derivatives Emerging as a Cheaper Alternative in China

22 Nov 2010 • by Natalie Aster

GBI Research’s report, “Vinyl Chloride Monomer (VCM) Global Supply Dynamics to 2020 - Production from Coal Derivatives Emerging as a Cheaper Alternative in China Dichloride” is an in-depth report on the supply side of the global VCM industry. The research presents detailed analysis and forecasts of the major economic and market trends affecting the VCM supply in the major regions of the world. The report contains capacity, production analysis and forecasts, drivers and restraints, capacity analysis by key feedstock, by production process and by technology, price analysis for feedstock ethylene and a capacity share analysis of the major producers in all the regions of the world. In addition, it includes capacity and production forecasts for the major countries in all geographies. Overall, the report presents a comprehensive analysis of the global VCM market covering all the major parameters.

Global Vinyl Chloride Monomer (VCM) Production is Expected to Grow at a CAGR of 2.7% from 2009 to 2020

Global VCM production in 2000 was 21.1 million tons. It grew at a CAGR of 3.7% from 2000 to 2009. Global VCM production in 2009 was 29.3 million tons.

Global VCM production is expected to grow at a CAGR of 2.7% from 2009 to 2020.

Asia-Pacific had the Largest Production Capacity in 2009

Global VCM capacity in 2009 was 40.0million tons. Asia-Pacific had the largest capacity of 18.1 million tons and a share of 45.1%. Europe had a capacity of 10.4 million tons and a share of 25.8% followed by North America with a capacity of 8.0 million tons and a share of 20.0%. The Middle East had the capacity of 2.0 million tons and a share of 5.2% followed by South and Central America with a capacity of 1.6 million tons and a share of 3.9%.

The following graph shows the global VCM capacity share of different regions in 2009.

Naptha is the Major Feedstock Used for Production of VCM

Global VCM capacity in 2009 was 40.0 million tons. 50.8% of the global capacity was based on Naphtha for feedstock while 27.2% of global capacity was based on Natural gas for feedstock. 17.2% of the capacity was based on Coal and 4.7% capacity was based on other feedstocks.

The following graph shows the global VCM capacity analysis by feedstock in 2009.

Acetylene route emerging as the cheaper alternative to producing VCM in China

China still produces the majority of its VCM through the acetylene route which is considered to be highly polluting and energy consuming. But the presence of large low cost coal fields gives it an advantage. Otherwise it has to depend on ethylene derived from crude oil. The future of acetylene based plants will depend upon global crude oil prices because if they remain low china will import VCM derived from EDC. Otherwise it may resume building more acetylene based VCM plants.

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