2022 PVC:Analysis of The Current Market Situation in China
PVC is an amorphous white powder with a small degree of branchedness, a glass transition temperature of 77-90°C and decomposition at 170°C. It has poor stability to light and heat and will decompose at 100°C or above after prolonged exposure to sunlight. When exposed to sunlight for a long time, it will decompose and produce hydrogen chloride,than decomposite autocatalytic , causing discolouration and a rapid decline in physical and mechanical properties,.In practical applications stabilisers must be added to improve the stability to heat and light.
In recent years, China's PVC production capacity has been expanding, reaching 27.13 million tonnes/year in 2021, an increase of 1.8% year-on-year and accounting for more than 50% of global PVC production capacity. The "calcium carbide" process is still the dominant production method, but the ethylene process is becoming the mainstream technology for new PVC projects.
China's PVC industry started a little later than the global market. In 1958, China's first PVC production plant was officially put into operation at Jinhua Plant, and in 2014 the pattern of self-sufficient supply and demand for PVC in China basically took shape, with China's PVC production reaching 21.3 million tonnes by 2021 and a capacity utilisation rate of 78.5%.
In 2020, the apparent consumption of PVC in China will reach 21.06 million tonnes. 2021 will be affected by the downturn in the real estate market and the apparent consumption of PVC will drop slightly to 19.94 million tonnes.
In 2017-2019, benefiting from the booming domestic real estate and infrastructure sectors, domestic PVC supply was dominated by domestic demand; on the other hand, China's PVC is mostly made of calcium carbide, which has certain quality differences with the ethylene method. 2021 was affected by the epidemic and the extremely cold weather and hurricanes in the United States, the shortage of supply in the international PVC market led to a surge in China's PVC export orders, with China's PVC exports reaching 175.4 The number of imports was 399,000 tonnes, a decrease of 57.9%.
India is China's largest PVC exporter, due to India's rapid economic growth and demand for agricultural pipeline materials, while its own domestic production capacity is insufficient to make up for the gap in large quantities of imports, 2021 China's PVC exports to India 304,100 tons, exports amounted to $368 million, respectively, accounting for 17.3% and 16.7% of the total.