Analysis of China PVC Industry, 2009

• Publication date: September 2009

PVC is the second-largest synthetic resin, widely applied in many fields. In general, PVC divides into soft and hard products, in which soft PVC products accounted for 40.8% of China’s total PVC consumption and hard products take rest of the all. In terms of the application, the application of PVC is relatively dispersion, in which sectional materials of doors& windows accounts for 22.9%, tube stock takes 13.3% and diaphragm accounts for 12% o...

PVC is the second-largest synthetic resin, widely applied in many fields. In general, PVC divides into soft and hard products, in which soft PVC products accounted for 40.8% of China’s total PVC consumption and hard products take rest of the all. In terms of the application, the application of PVC is relatively dispersion, in which sectional materials of doors& windows accounts for 22.9%, tube stock takes 13.3% and diaphragm accounts for 12% of the total.

The Chinese PVC is produced by the method of calcium carbide mostly, which accounts for 75% of the total output; ethylene process accounts for 22% of the total, and mainly produced in Shandong, Tianjin and other coastal cities. But, in the most of other countries, 65% PVC is produced by the method of ethylene.

In terms of the development of China’s economy and real estate industry, the demand of PVC has been a rapid growth. The output of PVC from 5.03 million tons in 2004 rose to 9.72 million tons in 2007, an average annual compound growth rate of 23.57%, significantly higher than the GDP growth rate. In 2008 affected by the global financial crisis, the PVC production slipped to 8.82 million tons.

For a long time, China's PVC self-sufficiency rate has not reached 100%, along with the strong domestic demand, the domestic PVC production capacity is relatively lagging behind the demand, but after the domestic production capacity gradually released largely, the self-sufficiency rate reached in a high level, some months reached 90%; but affected by the global financial crisis, the production capacity had a relatively surplus, and the collapse of crude oil prices led to a negative affect for China’s calcium carbide process PVC production cost, operating rate dropped drastically and PVC self-sufficiency rate has been dropped. But, along with the rising of global crude oil price, the Chinese PVC production enterprises will gradually reopen and the self-sufficiency rate will start to rise.

Generally, in the long time PVC market, an economic cycle normally should be 3-4 years. From 1993 to now, PVC market has been encountered five cycles with prosperity and recession. Presently, China's PVC industry is in a mature period with high-cost.

Building Material Industry in China

Contents

1 Overview of PVC Industry
1.1 The features of PVC
1.2 The category of PVC
1.3 The application of PVC

2 Overview of PVC production
2.1 PVC production process
2.1.1 The methods of PVC production
2.1.2 Raw materials - calcium carbide
2.2 PVC production capacity distribution
2.3 PVC output
2.4 PVC self-sufficiency rate
2.5 Comparison between calcium carbide process and ethylene
2.5.1 Price difference
2.5.2 Cost
2.5.3 Dynamic comparison of the cost

3 Analysis of industrial cycle
4 Analysis of industry by Porter Model

5. Key Companies Analysis
5.1 Ningxia Younglight Chemicals Co., Ltd
5.1.1 Introduction
5.1.2 Profit model
5.1.3 PVC production
5.1.4 Performance
5.2 Xinjiang Zhongtai Chemical Co., Ltd
5.2.1 Business strategy
5.2.2 Resource reserve
5.2.3 Performance


Figure
The distribution PVC consumption
Category of PVC production in China and worldwide
The production capacity, output and production growth of Calcium carbide in China
The cost composition of calcium carbide
The price difference of Calcium carbide
PVC production capacity and growth rate
The Distribution of China's PVC production capacity
The output of PVC in China
The year on year growth rate and monthly output of PVC in China
The PVC output and self-sufficiency rate in China
Comparison of the price between Ethylene PVC and calcium carbide PVC
The price difference of calcium carbide PVC
The price difference of Ethylene PVC
The cost structure of calcium carbide PVC
The cost structure of Ethylene PVC
The price trend of Calcium Carbide
The price trend of Ethylene
The chart PVC industry cycle
The industrial chain of Ningxia Younglight Chemicals Co., Ltd
PVC cost structure of Ningxia Younglight Chemicals Co., Ltd
The production capacity of chlor-alkali of Xinjiang Zhongtai Chemical Co., Ltd
The gross profit rate of Xinjiang Zhongtai Chemical Co., Ltd

Table
The top 10 Chinese PVC manufacturers
Cost-sensitivity analysis of calcium carbide PVC
The self-sufficiency rate of limestone of Ningxia Younglight Chemicals Co., Ltd
The operating income and operating costs of Ningxia Younglight Chemicals Co., Ltd
The revenue and cost proportion 2008 of Ningxia Younglight Chemicals Co., Ltd
The quarterly performance of Xinjiang Zhongtai Chemical Co., Ltd