Asian PVC production capacity in 2009 will account for nearly half of the global operating rate will be far below the global average
2025-10-06 09:13:29
The U.S. publication *Chemical Weekly* recently highlighted that Asia is set to drive the global PVC market's rapid expansion in the coming years. According to recent data, global PVC production capacity reached 32.86 million tons per year in 2005, with the Asia-Pacific region accounting for 16.27 million tons annually. North America and Western Europe followed with 8.543 million tons and 6.408 million tons respectively. The industry research firm Chemical Markets Alliance (CMAI) forecasts that global PVC demand will grow at an average annual rate of 4% through 2009, with most new capacity concentrated in Asia, particularly in China. As a result, Asia’s share of global PVC production is expected to rise from 44% to 48% by 2009.
China has been a major contributor to this growth, with new PVC capacity reaching over 2 million tons per year in 2005—about 40% of the world’s total new capacity. Most of these new facilities use the calcium carbide process, which produces PVC that is not easily exportable. This could lead to lower operating rates for Chinese PVC plants compared to the global average. Meanwhile, North America faces a different scenario due to limited new capacity. The region’s operating rates are expected to remain above the global average, especially after supply disruptions caused by Hurricane Katrina in late 2005. Analysts predict that North America’s PVC supply will stay tight in 2006, partly due to potential shutdowns, such as OxyVinyls’ 150,000-ton-per-year plant in Edmonton, Canada. However, there is some positive news: Shintech plans to build a 590,000-ton-per-year PVC facility in Louisiana.
In 2004, the North American PVC market saw strong growth of 6%, but it declined by 3% in the first three quarters of 2005. Analysts believe that if the residential and construction sectors continue to recover, PVC demand in North America could increase by 3% to 5% in 2006. Overall, while Asia leads the growth, North America faces challenges in meeting demand, highlighting the shifting dynamics of the global PVC industry.
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