Officials warn China's PVC overcapacity will only get worse

By Nina Ying Sun
Assistant Managing Editor

Published: April 21, 2014 3:47 pm ET
Updated: April 21, 2014 3:51 pm ET

Related to this story

Topics Materials China
Companies & Associations

Despite worsening overcapacity, China still imports a million tons of PVC.

Earlier this month, the China Petroleum and Chemical Industry Federation issued an industry-wide overcapacity early warning report. The PVC resin industry will see its capacity utilization rate drop even further in the next two years.

Sun Weishan, deputy secretary-general, said new capacity continues to be built, much of it due to come on stream in 2014 and 2015, according to China Chemical Industry News.

He blamed China's investment-driven growth model for the situation, but also pointed out the overcapacity, in many cases, is "structural."

Using PVC as an example, he explained that most of China's capacity is general purpose grades. Downstream converters still rely on imports for special grade PVC resins. He said the import volume nears 1 million metric tons each year.

The early warning report has been submitted by the Beijing-based trade group to China's state council.


Comments

Officials warn China's PVC overcapacity will only get worse

By Nina Ying Sun
Assistant Managing Editor

Published: April 21, 2014 3:47 pm ET
Updated: April 21, 2014 3:51 pm ET

Post Your Comments


Back to story


More stories

Image

Dow Chemical to merge chlorine operations with Olin

March 27, 2015 12:43 pm ET

Dow Chemical Co. is combining a large part of its chlorine value chain with specialty chemicals and ammunition maker Olin Corp. to create a global...    More

Image

Eastman Chemical expanding Tritan co-polyester capacity

March 27, 2015 10:00 am ET

Eastman Chemical Co.'s Tritan-brand co-polyester business continues to grow, with 35 million pounds of capacity added late last year and a second...    More

Image

PolyOne's Patterson focused on keeping the momentum going

March 27, 2015 9:30 am ET

New PolyOne CEO Robert Patterson sees a lot of good things when he looks at his company, which ranks as North America's largest compounder and...    More

Image

Improvements to Radici's nylon line takes it into more applications

March 27, 2015 9:00 am ET

Radici Group, the Italian-headquartered materials firm, outlined the benefits of its Radilon and Radistrong nylon products at NPE 2015.    More

Sun Plastech, Plastics Color Corp. note major milestones at NPE

March 27, 2015 9:00 am ET

Sun Plastech Inc. and Plastics Color Corp. — two well-known materials firms — are marking anniversaries at NPE 2015.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events