ChemOrbis 2nd PVC Event: low oil may not harm PVC profitability
During his speech, Dr. Faisca focused on the fact that Middle Eastern producers have recently been losing their cost advantage in line with falling crude oil prices as lower-priced shale gas-based ethane supplies help US producers become more competitive. However, he added that a low oil scenario does not necessarily mean lower profitability for PVC producers, stating, “Low electricity and ethylene costs are the key to competitiveness in the vinyls chain.”
Dr. Faisca then shared data regarding the ethane production developments in the US and talked about the current demand situation in global PVC markets, discussing the main factors behind the recent slow down. He highlighted that new PVC projects in China are mostly ethylene based, signaling the possibility that the Chinese market may become less dependent on acetylene based PVC in the future.
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