India PVC industry surges ahead despite weak global trends
SAN JOSE, CALIFORNIA (Commodity Online): Near term
prospects for polyvinyl chloride (PVC) remains depressed on weak
construction sector demand amidst mounting debt crisis in Europe and
slow recovery in North America. However, Indian PVC industry is expected
grow stronger on steady increase in demand stimulated by the growth in
infrastructure and packaging sectors, according to a new report titled
"Polyvinyl Chloride (PVC): A Global Strategic Business Report" released
by Global Industry Analysts, Inc (GIA).
The Asia-Pacific and the Middle East hold the best prospects for PVC in the long term apart from Latin America.
Higher growth rates are also anticipated in the Middle East with
contribution from the oil industry. While Asia continues to remain the
bright spot for growth in the PVC market. Demand in China, the largest
market for PVC, currently stands challenged amid the contraction in
housing market as a result of government initiatives to temper the
overheated economy in construction and housing sector. In order to
soften the aggressive expansion in property market, the Chinese
government introduced several measures such as non-issuance of loans for
buyers of third home, hike in minimum mortgage rate and tightening of
down payment conditions for second-home buyers. In Japan, with the
nation currently focused on reconstruction activity, major share of PVC
production is being diverted towards domestic consumption rather than
Global PVC market will remained sluggish in the near term, undermined
by the less dynamic pace in construction industry acorss the developed
countries. Amid the slowdown, the market continues to undergo a phase of
continued destocking as a result of high inventory levels. With
substitute products such as steel and concrete pipe gaining foothold,
PVC manufacturers face stiff competition in addition to downward
pressure on prices. In some cases these substitutes offer more
durability and convenience as compared to PVC. Growing environmental
concerns are also leading to a decline in the use of PVC resin, a trend
further exacerbated during the economic slowdown.
the PVC industry is set to continue over the short term as players seek
economies of scale through strategies such as mergers and integrated
Major players profiled in the GIA report include Arkema, Chemplast
Sanmar Limited, Chemson Group, Ercros SA, Aiscondel, Formosa Plastics
Corporation, Formosa Plastics Corp., INEOS Group Ltd, Georgia Gulf Corp,
LG Chem, Mitsubishi Chemical Corporation, Occidental Chemical
Corporation, OxyVinyls, PolyOne Corporation, Shin-Etsu Chemical Co.,
Ltd., Solvay, SolVin, Vestolit GmbH & Co. KG, Vinnolit GmbH &
Co. KG, among others.
16/08/2012 02:12:59 PM
LONDON (ICIS)--The European polyethylene terephthalate (PET) market is in limbo as producers decide how best to
limit losses in ...
PVC demand has remained weak in 2009 following collapse in consumption in H2-2008 as the weak economic outlook continued to ...