SE Asia PVC demand set to grow 4.5% over 5 years

19 June 2008 11:01  [Source: ICIS news]

BANGKOK (ICIS news)--Demand for polyvinyl chloride (PVC) in southeast Asia is expected to grow by 4.5% over the next five years, with Vietnam leading the charge, a market player said on Thursday.

 

Overall demand in southeast Asia grew by 1.8% in 2007 but this was expected to climb in the coming years due to rising investment and consumption in the area of construction, particularly irrigation, said Guenther Nadolny, the managing director of Thailand-based producer Vinythai, at the 12th Asian Chlor-alkali Conference here.

 

Most of these projects were likely to take place in developing nations such as Vietnam, where PVC demand was expected to grow by almost 9% from 2008 to 2013, said Nadolny.

 

“Vietnam might be facing some economic problems right now but we still expect demand there to be growing at a strong rate,” he added.

 

The country has been struggling with surging inflation and a ballooning trade deficit recently after enjoying years of high economic growth.

 

PVC demand in Malaysia and Thailand had meanwhile been affected by political uncertainty and resultant delays to government projects but it was still expected to grow by 3.5% and 3.9% respectively in the next five years, Nadolny said.

 

Despite the growth in demand, most countries in southeast Asia were able to produce more PVC than they needed domestically, with the exception of nations such as Singapore and Vietnam, Nadolny said.

 

The region had an overcapacity of PVC as a result and the competition in southeast Asia would be advantageous to the few producers who could best manage their costs and logistics, he said.

 

The two-day conference, organised by ICIS and Tecnon, will end on Friday.

 

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By: Ng Hun Wei
+65 6780 4359

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