China's PVC market this year or face greater pressure

2014 , before the idle equipment is also more difficult to have a stable driving conditions , so the industry problem of insufficient capacity utilization also more prominent. Since 2013 the U.S. shale gas exploitation obvious cost advantage is more conducive to American chlor-alkali industry in the global market competition and layout of China's PVC market impact , resulting in a more difficult PVC market in 2014 , companies faced big pressure.Sellotape
 

The latest survey data show that capacity , as of the end of December 2013 , China PVC existing capacity of 24.76 million tons ( 1.02 million tons which paste resin ) . Chinese new year 2013 to increase production capacity of 2.86 million tons PVC , announced the official withdrawal of scale over the same period was 151 million tons, the annual net increase of 1.35 million tons , an increase of 5.8 %. 2014 new PVC production capacity is still ahead. From the expansion trend, the country plans to add PVC capacity in 2014 was 323 million tons. The wider geographical distribution and expansion pattern continues the transition to multi-angle . Increase the proportion of ethylene PVC expansion in the future , and PVC paste resin exceptionally rapid expansion .

It is understood that although the 2013 National PVC production hit record highs, but in 2014 the PVC market still faces a grim situation , be able to continue to increase in production, under unfavorable factors such as the impact of the U.S. shale gas development impact , the price will narrow range of low volatility, companies will face greater operating pressure.

In this context , to resolve industry overcapacity introduce policies to guide the future development of the very important PVC industry, by the Ministry led " chlor-alkali industry access " is expected in 2014 issued the revised result , this amendment will strengthen the scale and regional distribution energy consumption standards, safety evaluation standards , facilities and environmental assessment requirements of a full range of requirements, introduction of new standards will guide the chlor-alkali industry more healthy development.Washi tape
 
2014 PVC industry still face complex environment. First , both the procurement of raw materials such as carbide or imported vinyl will face many constraints in external conditions ; secondly , logistics and transport with rail freight costs or increases in prices, but whether it can be passed on to the price of PVC is uncertain ; Furthermore , although the PVC industry 's expansion growth has declined , but the accumulation of huge production capacity continue to release , coupled with lower demand growth lagged behind , really reverse the market supply and demand is also in a day .Masking tape

The next period of time, along with new PVC plant put into operation , the market will be further excess supply , which will lead the industry operating rate is not high and the competition is more intense, lower product prices may make the chlor-alkali industry, the situation continued to decline in profitability .

In this context , the introduction of industry overcapacity resolve policy is very important to guide the future development of the PVC industry. Led by the Ministry , " the chlor-alkali industry access" is expected to issue a revised 2014 results . This amendment will strengthen the scale , regional distribution , energy standards, safety evaluation standards , facilities and environmental assessment requirements of a full range of requirements. Introduction of new standards will guide the chlor-alkali industry more healthy development.Wholesale masking tape