APLA ’13: Latin America PVC deficit to rise through 2015 – Mexichem

17 November 2013 16:04  [Source: ICIS news]

CARTAGENA, Colombia (ICIS)--The polyvinyl chloride (PVC) deficit in Latin America is expected to grow through 2015, an executive from producer Mexichem said on Friday.

The deficit of PVC supply to demand will rise from 509,000 tonnes in 2012 to 662,000 by 2015, said Emel Mendoza, commerical manager at Mexichem Resinas Colombia.

He spoke at the 2013 Polyolefins Consulting Seminar organised by the PetroChemical Consulting Alliance ahead of the 33rd annual Latin American Petrochemical Association (APLA) meeting.

Capacity is expected to grow from 2.35m tonnes/year in 2012 to 2.62m tonnes/year by 2015, while demand would increase from 2.62m tonnes/year in 2012 to 3.02m tonnes/year by 2015.

Using a 90% operating rate on installed capacity, production is estimated at 2.11m tonnes in 2012 and 2.35m by 2015, leading to the deficit of 662,000 tonnes by 2015, Mendoza noted.

Feedstock vinyl chloride monomer (VCM) is far more competitive produced in the US based on ethane versus naphtha in Laton America, he said.

“Our signed joint venture with OxyChem to produce VCM in Texas will make us the most competitive,” said Mendoza.

Demand for PVC in Latin America has plenty of room to grow, as market penetration is low in applications such as window profiles, flooring and roofing systems, he noted.

“For flooring, PVC has 14-15% of market share in the US and Europe, but almost zero in Latin America, as people prefer ceramic. Here we need to educate people on the positive properties of PVC,” said Mendoza.

Favourable properties include durability, easy installation, soundproof, hypo-allergenic and stain and abrasion resistance.

The APLA conference runs 16-19 November in Cartagena, Colombia.

By: Joseph Chang
+1 713 525 2653

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