China PVC demand to reach 13m tonnes in 2011 - Shandong Xinfa Huayu

07 April 2011 15:34  [Source: ICIS news]

MUMBAI (ICIS)--China’s demand for polyvinyl chloride (PVC) is expected to reach 13m tonnes this year, according to an industry official on Thursday.

Demand will be supported by China’s construction sector, as the government this year plans to start building 10m housing units, said Chi Junqing, head of marketing at Shandong Xinfa Huayu Co.

Chi was speaking at this year’s Vinyls India conference in Mumbai.

“This will provide a reliable guarantee for PVC building materials’ construction growth,” he added.

The Chinese government plans to build 36m units of subsidised apartments over the next five years.

Chi estimated that China’s PVC demand grew by around 15% last year to reach 12m tonnes, with capacity of 20m tonnes/year and production of about 11m tonnes.

Overall, the country has more than 90 PVC producers, with carbide-based PVC accounting for 81% of the total capacity, he said.

There are three carbide-based producers that have capacities that are more then 600,000 tonnes/year: Xinjiang Tianye, Xinjiang ZhongTai and Shandong Xinfa Huayu Co, according to Chi.

“After 2004, capacity has developed in provinces which have abundant raw material. Nearly 40% of the total capacity is now in the now in the northwest, southwest regions and in Inner Mongolia,” he said.

He pointed out that the quality of carbide-based PVC has consistently improved in the last few years because of changes to technology and use of large reactors.

“Carbide-based PVC can meet the quality criteria of ethylene method. The product has already got the approval from many global customers and was exported to more than 100 countries,” he said.

The Vinyls India conference ends on 8 April.

For more on PVC visit ICIS chemical intelligence
Read John Richardson and Malini Hariharan’s Asian Chemical Connections blog

By: Malini Hariharan
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