Chinese PVC industry dependent on exports

09 November 2007 02:16  [Source: ICIS news]

HOUSTON (ICIS news)--China’s polyvinyl chloride (PVC) industry has expanded so rapidly that it will need to rely on exports to remain sustainable, a US producer said on Thursday.

Although the expansion of Chinese PVC production capacity by 2009 represents 90% of global PVC expansion, actual PVC production rates in China could fall as low as 60% of capacity in 2008, said Philip Chen, vice president of Formosa Plastics.

Chen was speaking at the two-day US Chlor-Alkali and Vinyls Conference organised by ICIS.

“Why has there been so much unplanned expansion in China? I don’t even think the central government knows the answer,” Chen said.

However, Chen expects the Chinese government to take action to discourage PVC exports due to the export increase seen in 2007 over the previous year.

“The central government will add a tax on exports. It won’t happen today or tomorrow, but it will be soon,” Chen said.

By: Greg Holt
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