ChemOrbis 4th Turkey Petrochemical Conference: Status and prospects of chlorviynls business
Harriman analyzed the current condition of the chlor-alkali markets in the first part of his speech. According to him, the European chlor-alkali market is under immense cost pressure as electricity accounts for 48% of the industry’s production costs while Europe suffers from high electricity costs.
Harriman also pointed out the disadvantages currently faced by the global PVC markets, commenting, ” The PVC industry is going through a hard period. Europe is seeing a reduction in capacity, China is facing an over-investment issue. PVC in danger of being bypassed as an investment.” Only 9% of ethylene in Europe is used for PVC production, according to him.
Among the issues faced by European chlorvynils producers, Harriman cited high power costs, weak demand, mature market conditions and the ethylene cost disadvantage as well as China’s competitive carbide based production. Harriman also pointed to the changing structure of the PVC market. Currently, Inovyn has the largest share in European PVC production with 34%, followed by Kem One with 13% and Vinnolit and Vynova at 12%. “Europe is drawing nearer the US model where there are only 5 well integrated PVC producers,” he noted.
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