The hottest industry official said that China's PV

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Industry officials said that China's PVC industry is in urgent need of integration. The head of a plastic trade association in China said that although China's PVC industry ranks first in the world in terms of total production capacity, the industry is highly fragmented and in urgent need of integration and reorganization, so as to enhance its competitiveness in the international market

Li Jun, President of China Chlor Alkali Industry Association, headquartered in Beijing, said that the average production capacity of Chinese PVC manufacturers is 160000 tons, which is only 1/3-1/5 of that of Japanese and American counterparts, which hinders the innovation ability of China's PVC industry and makes it unable to compete in the global market

Li Jun said in a speech in Hangzhou on May 26 that although China's domestic PVC industry has developed rapidly since 2000, if its structural problems are not solved, "it will lead to a series of serious problems"

at the same time, but more importantly, Li Jun, chairman of Shanghai Chlor Alkali Chemical Co., Ltd., China's sixth largest PVC manufacturer, said, "in fact, these hidden dangers have long been buried, and the financial crisis has only accelerated its exposure."

he delivered a speech at the 2010 China Plastics Industry Conference held from May 26 to 27. The meeting was jointly organized by Dalian Commodity Exchange and China Petroleum and Chemical Industry Federation

industry restructuring will also contribute to the more sustainable development of the PVC industry, such as strengthening the research on alternatives to mercury containing catalysts and increasing the overall R & D expenditure

many Chinese enterprises, including some large-scale companies, do not pay enough attention to R & D. Li Jun said, "this practice is completely detrimental to the steady operation and development of these enterprises."

he said that the biggest challenge facing the PVC industry is economic

he said that although the domestic economic growth rate this year is expected to reach 9-10%, the rapid expansion of PVC in recent years has made the capacity utilization rate of the whole industry extremely low, only 50%

some analysts present at the meeting believed that Li Jun was calling for the postponement of the almost uninterrupted domestic capacity expansion plan, so that existing manufacturers have room to improve their profitability

Li Jun said that the profitability of the industry in 2009 fell to the lowest level since 2003. In 2003, China began to protect local producers through anti-dumping measures, promoting the vigorous development of the local PVC industry. By 2005, China overtook the United States in production and became the world's largest PVC producer

he said that although the global economy is still volatile, China's PVC industry still plans to add about 6.7 million tons of capacity by 2012, an increase of about 35% over 2009

it is expected that China's economic growth is expected to continue to drive the growth of PVC demand, especially in the fields of housing and automobiles. This expectation of future growth is undoubtedly driving some capacity expansion plans

Li Jun said, however, even if all the proposed new capacity has not been put into production, he believes that the capacity utilization rate is still too low, and the entire industry is too fragmented

there are about 105 PVC production enterprises in China, while there are only 8 in the United States, with an average capacity of 750000 tons, and 5 in Japan, with an average capacity of 470000 tons

Li Jun said, "changing the growth mode, strengthening technological innovation and sharing the society are the choices that must be made by China's PVC industry to achieve sustainable development and promote China to become the world's top PVC power."

Janet Wright, business manager of chlor alkali and vinyl of London based consulting firm Tecnon orbitem Ltd., said that both the global and China's PVC industry had been hit hard by the financial crisis. China's PVC demand growth between 2007 and 2009 fell to 7%, far from the double-digit growth previously expected

she said at the meeting that this means that China's overall demand growth of about 1.5 million tons previously estimated has actually "shrunk"

According to Wright, 2 controlling temperature, residence time, pressure and flow rate can ensure the performance of general plastics. In 2009, many PVC projects were postponed or cancelled in China, and the actual production capacity was about 20% lower than the original estimate

According to Wright, the average annual growth rate of China's new material industry is expected to exceed 25% during the "1025" period, which has also impacted Chinese PVC manufacturers, because the acetylene based method they use to produce PVC is not as efficient as the vinyl system commonly used in other countries, which can reach the flame retardant level of UL94V-0 without adding flame retardants, resulting in low competitiveness

Wright said that this actually prompted China to increase imports of PVC, leading to the "collapse" of China's PVC exports, which are no longer competitive in the sluggish global economy

Li Jun said that even Japan and other major PVC producing countries in the world had a significant decline in domestic demand before the economic crisis, which increased the pressure on export enterprises in these countries, and a considerable part of PVC was exported to China

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