China's PVC Production Capacity Will Continue To Increase In 2019

- Nov 08, 2018-

China's PVC production capacity will continue to increase in 2018-2019

From 2013 to 2015, great changes have taken place in China's PVC industry as a whole. Under the market regulation, the effective production capacity is gradually decreasing, with a cumulative decrease of about 2.5 million tons over three years In 2015, the output of PVC also showed negative growth for the first time. From the end of 2015, the domestic supply and demand pattern of PVC gradually recovered to a relatively balanced state.

With the effective effect of market disablement, the supply and demand of the market will gradually balance by the end of 2015, and the profitability of enterprises has also improved significantly The 2016-2017 average PVC profit in Inner Mongolia region is about 485 yuan per ton.

However, with the improvement of enterprises'profitability, some of the earlier long-term parking devices or production postponement devices accelerate the process of starting up production capacity, and some enterprises plan to expand production, for this reason, Shandong Polymer Additives Co. . According to the analysis by Ltd, the new domestic production capacity in 2018-2019 is still at a relatively high level. At present, the domestic PVC production capacity has reached 23.98 million tons, and the planned new production capacity in 2018 is about 2.02 million tons. If the above-mentioned production capacity can be put into operation as scheduled, in 2018, PVC production capacity will reach 26 million tons, which will be the highest since 2013. But in reality, it is less likely that all of the new capacity will come on stream, some of it by the end of 2018 or when the cars will be running, so a conservative estimate is around 25 million tons Supply pressure may rise slightly in 2018. But 80 tonnes of new PVC capacity are scheduled to come on stream in 2019, and there is expected to be a significant increase in PVC supply pressure in 2019, with a substantial increase in supply, if demand does not improve significantly Perhaps the price side is still a bit of a concern.