China's PVC exports face challenges

By Nina Ying Sun
Assistant Managing Editor

Published: August 22, 2014 2:14 pm ET
Updated: August 22, 2014 2:17 pm ET

Image By: China CAMC Engineering Co. Ltd. The Aug. 19 signing ceremony marking China CAMC Engineering Co. Ltd.'s plan to build PVC capacity in Uzbekistan.

Related to this story

Topics Materials, Materials Suppliers, China

Despite robust growth in the first half of the year, China’s PVC exports now faces new challenges, due to trade barriers and new capacity ramping up in other countries.

China exported about 740,000 tons of PVC resin in the first seven months of the year, more than double from the previous year, according to statistics from the General Administration of Customs. In fact, that number has already exceeded the 2013 full year export of 660,000 tons.

However, pressure is mounting from the two largest export destinations — India and Russia.

India has raised its antidumping charges on Chinese PVC resin to $91-$148 per ton. The charges were in the range of $8-$45 per ton prior to an April announcement by the India government.

As a major growth engine in the global PVC market, demand in India is projected to increase at an average annual rate of 5 percent, according to a Ceresana market study published last month.

Second only to India, Russia is China’s second largest PVC export market, representing 15 percent of China’s total PVC exports, according to a research report from Tang Xiao at GF Securities.

But the volume and pricing of PVC resins exported to Russia are pointing down, as several analysts noted, for a host of reasons. For one, Russia has been building domestic PVC capacity. The 330,000-ton RusVinyl project in Kstovo began trial production this month, on track to go on stream by the end of the year. The 1 billion euro project is a 50:50 joint venture between Russian petrochemicals group Sibur and the Solvay/BASF partnership SolVin.

Some Chinese exporters already reported lower orders for August, analyst Zhao Yuru at Beijing-based JYD Online Co. Ltd. said in a report. The impact will likely be felt most by PVC makers in the northwestern China such as Xinjiang Tianye Co. Ltd. and Xinjiang Zhongtai Chemical Co. Ltd.

Competition from the rest of Asia, Europe and the United States is adding to the pressure, Zhao said.

New capacity also is looming from countries like Uzbekistan. China CAMC Engineering Co. Ltd. announced this week that it will build a chemical complex that includes of 100,000 tons of PVC capacity for Uzbekistan’s chemical firm Navoiazot. The construction is expected to last 36 months.

Last week, Brazil also announced an extension of antidumping charges — at 21.6 percent — on PVC from China through August 2019.

Even so, JYD’s Zhao said opportunities still exist for China’s PVC exporters. For instance, established channels, steady supply and booming border trade between Russia and China can bring positive impact.


Comments

China's PVC exports face challenges

By Nina Ying Sun
Assistant Managing Editor

Published: August 22, 2014 2:14 pm ET
Updated: August 22, 2014 2:17 pm ET

Post Your Comments


Back to story


More stories

Image

Compounding products and services

November 24, 2014 9:47 am ET

   More

Image

Dow reaches agreement with Third Point

November 21, 2014 9:11 am ET

Dow Chemical Co. has reached an agreement with the investment firm that has been trying to force the company to sell off some assets.More

Image

Ineos making its UK shale play

November 21, 2014 9:29 am ET

Chemical giant Ineos Group AG is planning to be the biggest player in the United Kingdom's shale gas industry.    More

Image

Total to buy majority stake in Polyblend

November 20, 2014 10:04 am ET

French oil and gas giant Total SA will buy a 68 percent stake in Germany's Polyblend GmbH, a subsidiary of Polymer-Chemie GmbH.    More

Image

Molder Carclo expands in China, chasing medical growth

November 19, 2014 3:44 pm ET

U.K.-based injection molder Carclo plc is “significantly” expanding its Chinese medical manufacturing capacity with a new factory, as the ...    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events