PVC Demand Continues to Rise in China

In 2005, China consumed 8.2 million metric tons of PVC, passing the United States to become the largest consumer of PVC in the world, according to a new study from the Freedonia Group Inc. Demand for PVC in China will continue to rise 8 percent annually through 2010 to 12 million metric tons, primarily driven by healthy (although moderating) growth in construction expenditures. That pace of growth is somewhat down from 13.3 percent annual growth rate seen from 2000 to 2005.

The Cleveland-based market research firm notes that extrusion is the most important process used to manufacture PVC products in China, with extruded products projected to make up more than half of the market in 2010. This growth reflects good opportunities for PVC in the construction market, which accounted for more than 70 percent of extruded products demand in 2005.

Construction is the largest market for PVC resin, due to the growing use of PVC building materials, such as pipe and windows and doors, the study notes. Demand for these products will be driven by efforts to reduce energy loss from buildings and to lower costs for both production and maintenance.

The 195-page study—PVC in China—is available for $4,900 from the Freedonia Group Inc.