20 May 2009 03:59 [Source: ICIS news]
GUANGZHOU (ICIS news)--China’s heat stabilizer industry could contract by up to 5% in 2009 on declining demand and lower operating rates, industry sources said late on Tuesday at the sidelines of the Chinaplas 2009 exhibition, in Guangzhou.
The country produced around 600,000 tonnes of thermal stabilizers in 2008 but this output could drop to only around 570,000 tonnes this year, sources said. The Chinese thermal stabilizer industry had been growing between 10-15% per annum up til recently, they added.
Declining downstream demand brought on by the global economic downturn was among the main factors for the fall in output, market sources said. Poor margins have also forced Chinese heat stabilizers producers to reduce operating rates, currently at around 60%, they added.
Heat stabilizers are added when processing polyvinyl chloride (PVC) to prevent the polymer from decomposing under high temperatures.
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