22 June 2012 06:47 [Source: ICIS news]
SINGAPORE (ICIS)--Ample supply in the Chinese polyvinyl chloride (PVC) market is likely to persist in the near term, driven by poor domestic demand and bearish global economy, according to ICIS on Friday.
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Also, Chinese government’s plan to build 36m affordable public houses as stipulated in its five-year plan may also drive demand.
However, the recovery is likely to be slow, as any gains made through government-driven incentives may be undermined by weak downstream demand and bearish global economy, with weak
In south east Asia, oversupply is expected to persist over the next five years. In 2011, there was a supply surplus of about 0.7m tonnes out of a total capacity of 2.2m tonnes.
Of this capacity,
South east Asian demand is forecasted to grow by 4.4% per year on average over the next five years.
PVC demand in the region grew by around 2% on average from 2006-2011, with
The Asian market has been a key driver of recovery in the global PVC market since the 2008 financial crisis.
Asia is expected to account for 64% of global capacity by 2013, with
PVC demand in
($1 = €0.80)
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