The increase in demand for PVC up to 2021 by approx. 3.2% per year


In a new study, German research group Ceresana expects the PVC market to increase by 3.2% per year until 2021. Worldwide, about 39.3 million tonnes of PVC were consumed in 2013. Polyvinyl chloride (PVC) is one of the key products of the chemical industry and, in addition to polypropylene (PP) and polyethylene (PE), one of the most widely produced plastics. Accounting for almost 56% of global consumption, Asia-Pacific is the by far largest sales market for PVC and will continue to develop at the highest growth rates in the future

The Chinese construction industry continues to grow at higher rates than in most other countries, even though dynamics are slowing down somewhat. In addition to China, India is one of the growth motors on the PVC market. Demand in India is projected to increase at an average annual growth rate of 4.9%. The North American and Western European PVC markets have returned onto a growth path after incurring severe losses in previous years. The USA suffered from weak domestic demand in past years, but are seeing local demand for PVC products rise again, thanks to a more positive development of the construction sector. In Western Europe, countries affected by the crisis such as Spain and Italy seem to more or less have reached the bottom of the valley. Combined with rather stable markets, e.g. Germany, France and the United Kingdom, PVC consumption in Western Europe is likely to increase by about 1% per year again.In Europe, weak demand in recent years led to high market dynamics: Small and medium sized producers were either acquired by competitors or disappeared from the market. As a result, some countries, e.g. Italy, ceased producing PVC altogether. While some large-scale manufacturers like Arkema sold their PVC business Klesch Group, Solvay and INEOS merged their divisions: The joint venture Inovyn is expected to become operational at the end of 2014. Market researchers at Ceresana believe the founding of this by far largest European PVC manufacturer to be yet another sign of increasing pressure towards market concentration. Among the most important PVC products are pipes and conduits, at a considerable distance followed by plastic PVC profiles as well as films and sheets.

Also on the domestic market movement observed in new investments associated with PVC. The largest manufacturer cable Tele-Fonika Kable is going to acquire an investment loan of some PLN 250m (€60.5m) to finance investments in new cable solutions, research and development of new products and refinancing its existing debt from the European Bank for Reconstruction and Development (EBRD). another leading manufacturer of cables Elamt received a permit for an investment worth PLN 20m (EUR 4.7 million) in the manufacturing plant in the Special Economic Zone Euro-Park Mielec, the Carpathian mountains. The project is to enable the manufacturer to “extend an existing manufacturing facility as well as the acquisition of new machinery and lines for the production of new types of cables”. Polish manufacturer of pipes, fittings, and pipe made by using different materials include PP, PE and PVC also plans to increase production at its factory in Cologne Prawiedniki, in the south-eastern part of Polish, in connection with the planned merger with Finpol Rohr, who was acquired by the group parent company RADPOL in 2013.