09 March 2012 11:18 [Source: ICIS news]
“PVC demand in southeast Asia was 2.2m tonnes in 2011. During 2006–2011 period, PVC demand in southeast Asia grew by around 2% on average,” said Sumphan Luveeraphan, general manager at TPC’s commercial group.
Growing PVC usage to develop infrastructure, greater consumption as a substitute for other materials as well as more intra-region trades among ASEAN members are some of the opportunities for the PVC industry that will drive growth, Luveeraphan said.
“Demand will increase but capacity remains the same so producers’ export volume will decrease”, said Luveeraphan.
PVC capacity in southeast Asia was 2.2m tonnes in 2011, he said.
“However, it depends on VCM supply whether producers can run at 100%”, he added.
Vinyl chloride monomer (VCM) is the feedstock for the production of PVC.
VCM supply in southeast Asia is short, with demand in 2011 at 1.9m tonnes surpassing capacity at 1.8m tonnes, according to Luveeraphan.
Regional VCM will become tighter as demand is expected to grow to 2.2m tonnes while capacity remains stagnant, he said.
Besides a shortage of raw materials, the southeast Asia PVC industry has to overcome oversupply and price competition, said Luveeraphan.
“There is competition from northeast Asia, with abundant excess capacity, and from
The 6th International Chlor-Alkali and Vinyls Conference runs from 8-9 March.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections