Polyvinyl Chloride (PVC): A Global Strategic Business Report
San Jose, California (PRWEB) April 13, 2012
Follow us on LinkedIn – Global demand for Polyvinyl chloride (PVC) continues to remain clouded given the depressed business climate amidst the mounting debt crisis in Europe and slow economic recovery in North America. Growth in the PVC market is primarily driven by the construction industry which accounts for close to three-fourths of the resin demand. Near term growth is expected to remain anemic as the industry struggles to emerge from problems of protracted recovery in the construction sector, price volatility, and destabilization in supply-and-demand balances. After witnessing a tumultuous period of demand contraction in 2008 and 2009, owing to the financial crisis, and de-stocking that prevailed across the value chain, the PVC market witnessed an upsurge in demand, albeit at a sluggish pace in 2010. In 2011 PVC demand remained stagnant at 2010 levels, with no significant growth recorded in the end-use markets. Growth in the near term is expected to remain weak, undermined by the less dynamic pace in construction industry across the developed countries. Amid the slowdown, the market continues to undergo a phase of continued destocking as a result of high inventory levels, primarily in Europe.
As stated by the new market research report on Polyvinyl Chloride (PVC), developing countries in Asia-Pacific and the Middle East hold the best prospects for PVC in the long term. India is expected to witness a steady increase in demand stimulated by the growth in infrastructure and packaging sectors. Latin America is another region which holds bright opportunities for PVC. Higher growth rates are also anticipated in the Middle East with contribution from the oil industry. While Asia continues to remain the bright spot for growth in the PVC market, demand in China, the largest market for PVC, currently stands challenged amid the contraction in housing market as a result of government initiatives to temper the overheated economy in construction and housing sector. In order to soften the aggressive expansion in property market, the Chinese government introduced several measures such as non-issuance of loans for buyers of third home, hike in minimum mortgage rate and tightening of down payment conditions for second-home buyers. In Japan, with the nation currently focused on reconstruction activity, major share of PVC production is being diverted towards domestic consumption rather than exports. In Europe, outlook for PVC remains grim owing to the delayed turnaround in key end-use markets. Besides dull domestic demand, European producers face another problem of restricted export opportunities owing to low feedstock costs and increased capacity additions in emerging markets. Against the backdrop, operating rates in the region has dropped significantly, some by even 60%-70%, thereby affecting manufacturer profitability across the value chain.
With substitute products such as steel and concrete pipe gaining foothold, PVC manufacturers face stiff competition in addition to downward pressure on prices. In some cases these substitutes offer more durability and convenience as compared to PVC. Growing environmental concerns are also leading to a decline in the use of PVC resin, a trend further exacerbated during the economic slowdown.
Restructuring in the PVC industry is set to continue over the short term as players seek economies of scale through strategies such as mergers and integrated production. Major players profiled in the report include Arkema, Chemplast Sanmar Limited, Chemson Group, Ercros SA, Aiscondel, Formosa Plastics Corporation, Formosa Plastics Corp., INEOS Group Ltd, Georgia Gulf Corp, LG Chem, Mitsubishi Chemical Corporation, Occidental Chemical Corporation, OxyVinyls, PolyOne Corporation, Shin-Etsu Chemical Co., Ltd., Solvay, SolVin, Vestolit GmbH & Co. KG, Vinnolit GmbH & Co. KG, among others.
The research report titled "Polyvinyl Chloride (PVC): A Global Strategic Business Report" announced by Global Industry Analysts, Inc., provides a comprehensive review of trends, issues, strategic industry activities, and profiles of major companies worldwide. The report provides market estimates and projections (in ‘000 MT) for global and regional markets including the US, Canada, Japan, Europe, China, Rest of Asia-Pacific, Latin America, and Rest of World. End-use segments independently analyzed in the report include Construction, Packaging, Consumer Goods, Wire and Cable Coatings, and Miscellaneous.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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