19 December 2012 08:00 [Source: ICIS news]
TOKYO (ICIS)--Japan’s production of polyvinyl chloride (PVC) fell by 13% to 93,501 tonnes in November from the same period a year earlier, official data from an industry association showed on Wednesday.
“[Production] has become stable at around 90,000 tonnes, and we expect it will gradually start to increase,” Shunzo Mori, the chairman of the Vinyl Environmental Council (VEC) said in Japanese at a news conference.
The reason for such expectations was because the country’s housing starts have been increasing by a small rate but steadily, Mori added.
“Since [demand for] PVC tends to be influenced by construction [sector], we are looking closely at [its] trends,” he said.
Furthermore, the association expects demand for restoration works in Japan’s northeast regions - devastated by the massive earthquake on 11 March 2011 - to emerge, Mori said.
He said Shinzo Abe, the leader of the ruling Liberal Democratic Party, says the government will aggressively make public investments for the construction in the northeast. “...That’s why we expect [demand for PVC] will be in an upward [trend] because PVC is heavily [affected by] construction of homes and public works,” Mori added.
Japan’s domestic shipments of PVC fell by 1.5% year on year to 92,868 tonnes in November, according to the VEC.
Among the total, domestic shipments for rigid PVC was down by 0.9% to 52,521 tonnes from the previous year, while shipments for flexible PVC declined by 7.5% year on year, the data showed.
Exports of PVC nearly halved to 13,697 tonnes in November from the year-ago period, based on the data.
The fall in exports was because production was lower in November than the year-before period, vice chairman Toshinori Yamamoto said.
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