Last Updated : 15 April 2012 at 13:00 IST
India PVC industry surges ahead despite weak global trends
Source :Commodity Online
Global PVC market will remained sluggish in the near term, undermined by the less dynamic pace in construction industry acorss the developed countries. Amid the slowdown, the market continues to undergo a phase of continued destocking as a result of high inventory levels.
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By Col. Ajay
As per financial astrology, transit OD Sun in Saturn house is ..
SAN JOSE, CALIFORNIA (Commodity Online): Near term prospects for polyvinyl chloride (PVC) remains depressed on weak construction sector demand amidst mounting debt crisis in Europe and slow recovery in North America. However, Indian PVC industry is expected grow stronger on steady increase in demand stimulated by the growth in infrastructure and packaging sectors, according to a new report titled "Polyvinyl Chloride (PVC): A Global Strategic Business Report" released by Global Industry Analysts, Inc (GIA).
The Asia-Pacific and the Middle East hold the best prospects for PVC in the long term apart from Latin America.
Higher growth rates are also anticipated in the Middle East with contribution from the oil industry. While Asia continues to remain the bright spot for growth in the PVC market. Demand in China, the largest market for PVC, currently stands challenged amid the contraction in housing market as a result of government initiatives to temper the overheated economy in construction and housing sector. In order to soften the aggressive expansion in property market, the Chinese government introduced several measures such as non-issuance of loans for buyers of third home, hike in minimum mortgage rate and tightening of down payment conditions for second-home buyers. In Japan, with the nation currently focused on reconstruction activity, major share of PVC production is being diverted towards domestic consumption rather than exports.
Global PVC market will remained sluggish in the near term, undermined by the less dynamic pace in construction industry acorss the developed countries. Amid the slowdown, the market continues to undergo a phase of continued destocking as a result of high inventory levels. With substitute products such as steel and concrete pipe gaining foothold, PVC manufacturers face stiff competition in addition to downward pressure on prices. In some cases these substitutes offer more durability and convenience as compared to PVC. Growing environmental concerns are also leading to a decline in the use of PVC resin, a trend further exacerbated during the economic slowdown.
Restructuring in the PVC industry is set to continue over the short term as players seek economies of scale through strategies such as mergers and integrated production.
Major players profiled in the GIA report include Arkema, Chemplast Sanmar Limited, Chemson Group, Ercros SA, Aiscondel, Formosa Plastics Corporation, Formosa Plastics Corp., INEOS Group Ltd, Georgia Gulf Corp, LG Chem, Mitsubishi Chemical Corporation, Occidental Chemical Corporation, OxyVinyls, PolyOne Corporation, Shin-Etsu Chemical Co., Ltd., Solvay, SolVin, Vestolit GmbH & Co. KG, Vinnolit GmbH & Co. KG, among others.
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