PVC market trends in China
The polyvinyl chloride(PVC) market in China is expected to be strong outlook due to high prices of crude oil and recovering domestic demand for PVC. However, as of now, domestic inventories are high and spot sales pressure is strong, so the increase in domestic PVC prices is limited. The utilization rate of domestic and foreign PVC manufacturers is low, and the quantity of imported products is limited. Most of the PVC in China is produced by the carbide method and has excellent profitability. On the other hand, PVC makers which adopt the ethylene method are likely to reduce production in the future as the international market for ethylene, the main raw material, is strong, reflecting the rise in crude oil and naphtha prices. In addition, Russia's invasion of Ukraine has exacerbated the shortage of raw materials in Europe. The utilization rate of European PVC manufacturers is declining, and the imported price remains high. Against this background, the export volume of Chinese PVC is expected to increase in the future. There is a possibility that the utilization rate of PVC manufacturers that adopt the carbide method will increase.