PVC demand to increase at an average annual rate of 3.9%, fueled by rising construction activity in Asia; global capacity forecast to increase by about 25% to 63 million tonnes by 2019 with 80% of increase in Asia

Philip Goldsmith

KONSTANZ, Germany , May 18, 2012 (press release) – Now that the global recession has ended, the construction industry will again boost demand for PVC. The average annual growth rate of 3.3% seen in the past eight years is likely to be surpassed in future. The market experts from Ceresana forecast PVC demand to increase at an average annual rate of 3.9% over the next years.

Asia-Pacific remains the largest sales market.

With a roughly 53% share of global consumption, Asia-Pacific is the largest PVC outlet, followed by North America and Western Europe. Shares in demand of the individual world regions will shift significantly over the next eight years. The analysts from Ceresana expect countries in Asia-Pacific to increase their shares in the global PVC market - mainly at the expense of industrial countries. In contrast, emerging and developing countries will benefit from an increasing per-capita consumption of plastic products. Moreover, the construction industry is boosting in these countries, where many PVC products are used in civil and structural engineering.

Changes in regional demand will also have an effect on the production structure of manufacturers. The global PVC capacity of about 50 million tonnes is projected to be expanded by 13 million tonnes by 2019. Almost 80% of these new capacities will be created in the Asia-Pacific region.

Applications and Demand

The most comprehensive report worldwide analyzes how PVC use will develop in individual markets. Most important buyers include manufacturers of pipes and conduits; they accounted for 39% of global PVC demand in 2011. PVC plastic profiles accounted for just less than 20%. Films and sheets had an 18% share. Cables and cable sheathing made up 7% of global PVC demand in 2011. Flooring had a 4% share. Other industrial applications include automotive coatings, medical products like infusion bags, as well as shoes. They accounted for approximately 13% of global demand.

All application areas will see similar demand development over the upcoming eight years. As a result, shares of the individual application areas will shift only slightly by 2019. Pipes and conduits will see the smallest increase in demand of 3.7% per year. However, this sector will remain the largest PVC outlet by 2019.

The Study in Brief:

Chapter 1 is a concise overview of the different production methods and processing techniques of PVC. In addition, this chapter provides the most important information on PVC's characteristics, raw materials, additives, fillers, application areas, recycling and disposal methods, environmental and health issues as well as legal situations.

Chapter 2 is a presentation and analysis of the global PVC market. It provides in-depth analyses on demand, production and capacities, as well as revenue and price development. Moreover, you will gain insight into the development of individual regions and global market dynamics.

In chapter 3, 41 countries are analyzed in detail: PVC demand, revenues, production, and imports & exports during past eight years. In addition, this chapter provides forecasts up to 2019 on PVC demand, revenues, production, imports, and exports.

Chapter 4 is an in-depth analysis of the individual application areas of PVC, such as pipes & conduits, profiles, films & sheets, cables & cable sheathing, flooring, and other applications. All data on demand development is split by Western Europe, Eastern Europe, North America, South America, Asia-Pacific, the Middle East, and Africa.

Chapter 5 is a useful list of producers that provides profiles of PVC manufacturers - clearly arranged according to contact details, turnover, profit, product range, production sites, profile summary, capacities, and brand names. In-depth profiles have been compiled on 125 manufacturers, such as Formosa Plastics Group (FPG), Georgia Gulf Corporation, Hanwha Chemical Company, INEOS Group Ltd., LG Chem Ltd., Mexichem, S.A.B. de C.V., Occidental Petroleum Corporation, Shin-Etsu Chemical Co. Ltd, Sinopec Corporation, and SolVin S.A.

www.ceresana.com/en/market-studies/plastics/polyvinyl_chloride

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