China's carbon fiber composite industry reports annual capacity of 4,000 to 5,000 metric tons, while market demand is at least twice as much. But capacity is less of an issue compared to high-end applications, according to experts.

Tang Jianmao, a director at the China Materials Research Society of Beijing, told China's National Business Daily that the capacity will receive a boost during 2011-2015 to meet market demand.

Since carbon fiber has been a hot topic, Tang said, domestic investors have shown a high level of interest in this field. However, money will not necessarily buy technological advancement, he advised.

Currently, there are about a dozen of companies dedicated to carbon fiber composite manufacturing in China. Hunan Oya Carbon Co. Ltd. is one of them.

Oya's general manager Zhou Yujun said his company had 57 million yuan (US$9 million) in 2010 sales, despite the sluggish European market. He expected sales to grow to 80 million yuan (US$12 million) this year and 150 million yuan (US$23 million) in 2013.

The company supplies carbon fiber composites to carmakers like BMW, Lamborghini and Ferrari, as well as aircraft manufacturers.

Its high-value added products for high-end clients are very rewarding, with profitability higher than 80 percent.

Zhou said he hopes the Chinese government will support the development of the carbon fiber industry, which will help other sectors -- such as the booming auto industry - become greener and more competitive.

Despite significant oversupply -- contributing to a low 55 percent capacity utilization rate -- further expansions are underway in China's PVC sector in the next five years. However, new PVC capacity will focus on higher-value-added grades, replacing outdated, lower-end, and energy-inefficient plants.

China's PVC capacity totaled 20.4 million metric tons in 2010. Actual output exceeded 11 million metric tons in 2010, and is expected to rise almost 10 percent annually to more than 16 million metric tons in 2015, according to various industry reports.

While exports could theoretically be a solution to overcapacity, Chinese PVC producers -- many using coal as a feedstock -- are losing price advantages due to a number of factors including the strengthening currency. They also face rising coal prices as China becomes a net importer of coal. Low-price ethylene imported from the Middle East poses further challenges to coal-based PVC.

Demand-wise, since 70 percent of China's PVC output is used in construction, the future of the real estate market in China brings some uncertainty. However, Beijing's aggressive plans to add government-subsidized residential housing and remodeling of old building are expected to boost demand.

The government is also taking solid measures to encourage low-emission, energy-efficient manufacturing. Policymakers said they'll take a more active role in regulating the industry through the approval process of new PVC projects as well as economic incentives such as electricity prices, taxes and lending policies.

Today is the last day for China's Ministry of Health to receive comments on its draft ban on the use of BPA in food containers/bottles for infants and young children.

If comments from six other government agencies are in agreement, the Ministry of Health will ban the domestic production and import of such products starting June 1. Sale of such products will be prohibited starting Sept. 1.

The announcement for the draft ban seeking comments came out on April 13. Since then, consumers have reacted strongly by purchasing glass bottles and containers instead, which has prompted some retailers to take plastic bottles and containers off shelves way ahead of the possible government deadline, according to various media reports.

Canada was the first country to ban BPA in baby bottles in 2008. The European Union has put in place a ban on production of baby bottles containing BPA starting March 1 and a ban of sale and imports starting June 1. Canada was also the first country to declare BPA a toxic substance last September.