22 July 2011 11:03 [Source: ICIS news]
SHANGHAI (ICIS)--China’s polyvinyl chloride (PVC) demand in Guangdong province remains weak in July owing to ongoing cuts in domestic power supply, with demand expected to improve only from September when the peak summer season comes to a close, local industry sources said on Friday.
The country’s PVC industry has been facing downward pressure since June, with downstream sectors such as film, cable, plastic pipes and shoe producers being affected.
Many PVC downstream producers in
“[Any company that] does not obey the authorities’ power-cut policy will have its power cut for 10 days, or face a fine of yuan (CNY) 100,000 ($15,503),” added the source.
“Companies located in Dongguan, especially in industry-intensive areas, have to cut their power for two days weekly,” said a general manager from Dongguan Liaobu, a PVC shoe producer.
Most PVC producers in Shenzhen have received notice from the government to cut their power for three days per week on weekdays. As a result, affected companies usually operate during the weekends, added Shenzhen Wanfu, another PVC shoe producer.
PVC plants in the south
Additional reporting by Dolly Wu
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