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ChemOrbis 6th Asia Petrochemical Conference: Coal dominates China’s PVC market

by ChemOrbis Editorial Team - content@chemorbis.com
  • 10/06/2015 (15:13)
Mr. Frank Ye, a partner from CHEM1 consulting, gave a presentation with topic of “Asia PVC market-Focus on China” to close out the ChemOrbis 6th Petrochemical Conference in Kuala Lumpur, Malaysia. The speaker highlighted that PVC pricing in China relies heavily to the price of coals and is relatively independent of the price of crude oil. Mr. Ye estimated that the supply of PVC materials in China is oversupplied by 10%.This overcapacity of materials has decreased operating rates to an average of 50-60%. As a result of that, China relies on exports, although the country’s exporters are facing challenges such as anti-dumping duties in India.

Mr. Ye commented that the macroeconomic picture in China has slowed down along with real estate investment, however it is believed that plastic production will benefit from the lower cost of polymers. From an economic point of view, the local ethylene based materials in China have already lost their competitive advantage when compared to the cost leadership position claimed by coal-derived acetylene based PVC.
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