Polyvinyl chloride (PVC) is a versatile thermoplastic with a broad range of applications from rigid pipe for construction applications to a thin crystal clear film for consumer packaging. The resin produced from the polymerization process is hard and brittle and requires conversion into a compound by the incorporation of additives such as plasticizers, modifiers, stabilizers and processing aids before conversion into finished products.
PVC resins are generally categorized as two types: rigid resins which have considerable strength and hardness; and flexible resins that contain a large proportion of plasticizers to make them soft and stretchable.
Rigid resins account for 65% of total PVC consumption and they are mainly extruded or moulded. They provide most of the growth opportunities with major end uses such as pipe and conduit, fittings, windows, roof tiles, fencing and automobile parts. Flexible PVC finds outlets in film and sheets, wire and cable coating, flooring, shower curtains and synthetic leather products.
PVC consumption is mostly influenced by the construction industry which accounts for three-quarters of demand and so it correlates closely with economic growth. PVC has been used increasingly as a replacement for traditional construction materials such as wood and metals owing mainly to its inherent flame retardant properties, so its growth has been above that experienced overall by the construction industry.
During the past few years, the global PVC market had been growing around 4%/year. Growth rates in the developed world had been slipping as these markets matured while stronger demand growth has been seen in central and eastern Europe as well as Asia, in particular China and India.
PVC demand collapses
However, in 2008, world demand plummeted by 8% compared to 2007 with total consumption falling to 33m tonnes, according to US-based consultants CMAI. Deteriorating economic conditions with its impact on the construction sector combined with destocking along the chain were the main reasons.
PVC demand in Asia had grown at close to 8%/year from 2003-2007 but in 2008 it shrank by 6% with most of it occurring in the last four months of the year, says CMAI. Over-stocking of inventory was initially blamed but in reality it was just the beginning of a global recession.
In China, PVC demand contracted by nearly 1m tonnes in 2008. Most of the demand destruction occurred in the last quarter after the Beijing Olympic Games.
CMAI expects much slower growth in Asia over the next five years and it is likely that the demand levels seen in 2007 will not be reached until 2011. Demand growth rates could reach 7%/year by 2012-2013.
Demand growth in China is expected to recover to GDP growth levels by 2010 and a full recovery by 2011. CMAI forecasts that PVC demand in China will reach 12m tonnes by 2013, about 2.9m tonnes higher than 2008.
PVC demand in the Indian Subcontinent region is expected to be resilient. While demand growth will slow in 2009, CMAI expects growth to accelerate above 10%/year from 2010 to 2013.
In Europe, PVC has been one of the slowest growing commodity polymers with usage becoming more and more concentrated in certain segments such as window profiles and pipes and fittings. In other areas such as packaging and bottles and short-lived consumer groups, PVC’s share has been shrinking with its replacement by polyethylene terephthalate (PET) and polyolefins.
However, a look at the difference in per capita consumption between West, Central and East Europe shows enormous potential for PVC growth in Central Europe and the Commonwealth of Independent States (CIS) countries such as Russia, the Ukraine and Kazakhstan. To reach the same level of consumption in West Europe, CMAI estimates it would require roughly 6m tonnes of additional PVC demand.
West Europe dominates the region with 6.8m tonne/year of PVC capacity in 2008. In the 2009-2013 period, around 730,000 tonne/year of new capacity will be added, primarily in Russia and the Ukraine, according to CMAI. However, delays to the start-up of some of the larger Russian projects are likely due to a shortage of ethylene and the economic downturn.
The PVC industry in the US faces an uncertain and potentially grim future in 2009. Demand for PVC construction materials is in a big slump and the global economic downturn has offered few signs that the situation will improve within a year. After the US mortgage meltdown brought a sharp downturn in new home construction in 2007, the PVC industry had hoped the housing market would recover in 2009 but has seen its hopes grow dimmer as the US economy slides deeper into recession.
One bright spot for US producers is that the export market has provided support for the industry but the question is whether this would continue. However, export figures from the US International Trade Commission showed US PVC exports in the first quarter of 2009 to be up by 36% from the same quarter a year earlier. The weak US dollar and growing demand overseas has encouraged US PVC exports with Egypt, China and India being the top three destinations.
The Middle East has been a bullish market for PVC. Demand is estimated to have grown by 12-13% in 2007 and 9-10% in 2008. However, growth is expected to decline once construction projects are completed and new infrastructure projects are delayed due to liquidity constraints and the economic slowdown.
Updated: May 2009. Sources: ICB Chemical Profile, 11 May 2009; CMAI 2009 World Petrochemical Conference, 25-26 March 2009, Houston, Texas.
Polyvinyl chloride
Process Technologies
A number of PVC processes are employed according to the end application, but polymerisation is normally performed at 40-70oC with the VCM in a liquid state under pressure in a batch reactor. All routes employ free radical initiators which are either soluble in the monomer or in the aqueous solution.
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