Demand stimulates production capacity increase Under the stimulation of demand growth, China's PVC production also showed a rapid growth trend, from 785 thousand tons in 1990 to 5.035 million tons in 2004, an increase of 5.4 times, with an average annual increase of 14 .19%. The growth rate of production in 2004 was 25%, which was a year-on-year increase of 22% from January to July 2005, and it is the fastest growing country in the world.
After China's accession to the WTO in 2001, tariff reductions, some foreign production companies took the opportunity to dump heavily in China, the increase in the import volume of PVC resin hit record highs, causing substantial damage to China's PVC industry. To this end, five domestic PVC manufacturers jointly filed an anti-dumping investigation in the first half of 2002. In September 2003, China made arbitration and imposed an anti-dumping tax of 7% to 84% on related companies in the United States, Japan, South Korea, Russia, and Taiwan. , effectively curb the momentum of import growth.
After the anti-dumping of PVC resin, the import volume dropped drastically. Although the domestic production also increased, the contradiction between the supply and demand of raw materials was highlighted, and the situation of PVC resin was in short supply, and the price was continuously rising. The large supply and demand gap and high profit margin created by the rapidly increasing demand for PVC have pushed the PVC industry to expand into a wider space for development. Many investment hot spots have turned to the PVC industry. Therefore, the trend of the large-scale expansion of the PVC industry has started everywhere.
The wave of expansion began to rise around the country. The capacity of installations in the country had reached 6.638 million tons at the end of 2004, an increase of 30% compared with 2003. As of the end of April 2005, the total PVC production capacity was 7.47 million tons, an increase of 12.5% ​​from the end of 2004. By the end of August, there were a total of 84 companies with PVC production capacity across the country, with a capacity of 8.564 million tons of PVC, an increase of 1.094 million tons from May, and a growth rate of 14.6%. There are also a group of companies with new production capacity put into operation in the third and fourth quarters. There are 9 companies that are newly-built PVC production lines. There were 93 PVC companies at the end of the year, with a total capacity of 103.040 million tons, and a total PVC expansion rate of 20.32%. . Among them, the ethylene expansion rate was 10.24%, and the calcium carbide expansion rate reached 25.5%.
In East China, three sets of PVC production capacity totaling 900,000 tons/year have been put into operation. Qilu Petrochemical Company's ethylene second-round renovation and expansion project, supporting the construction of a total capacity of 370,000 tons / year PVC plant can reach 600,000 tons / year; Shanghai Tianyuan (Group) Co., Ltd. in Shanghai Hao Chemical Industry Park to build 200,000 tons / Annual PVC equipment; Formosa Plastics Group, which ranked second in global PVC production capacity, built a 300,000-ton/year PVC plant in Ningbo.
In North China, PVC large-scale expansion projects are mainly distributed in Beijing, Tianjin and Quzhou. After the third phase of Tianjin Lejin Daxie Chemical Co., Ltd. was put into production, the production capacity of PVC will be increased from 240,000 tons/year to 340,000 tons/year; Quzhou Chemical Industry Co., Ltd. will use the new imported liquid chemicals terminal in Huangqi Dagang to import ethylene. The raw materials, the construction of a 400,000-ton/year VCM and 400,000-ton/year PVC joint plant, will be completed and put into production in 2005, with a total PVC production capacity of 690,000 tons/year.
In the northeast, Dalian Shide Group, one of the world's largest producers of PVC profiles, not only established a 400,000-ton/year PVC plant jointly with Jinhua Group in Huludao, Liaoning, but also plans to build a petrochemical industrial park in Dalian’s Shuangdao Bay by 2010. The largest petrochemical industrial base in Northeast Asia has been built, and the PVC project has been put into production from 2006 to 2007.
In the south, LG Chemical plans to build a 300,000-ton/year PVC plant in Fuzhou in 2005. Tosoh Corp. will build a 110,000-ton/year PVC project in Nansha Development Zone, Panyu, Guangzhou; 200,000 tons/year of Zhuzhou Chemical Group Co., Ltd. The PVC expansion project started in March last year.
In addition, in the second half of this year, 100,000 tons of calcium carbide method installed in Shandong Haihua, 100,000 tons of calcium carbide plant in Tangshan Sanyou, 100,000 tons of calcium carbide plant in Yancheng, Yunnan, and 120,000 tons of calcium carbide in Guizhou Anlong Jinhong Method devices, etc.
The industry "aircraft carrier" is ready to go. After a new round of investment, a large-scale PVC plant group will form in China. After 2004 and 2005, the production capacity of several large-scale PVC plants planned, expanded and under construction in China is 200,000 to 400,000 tons per year, which has reached a world-class scale. The product performance and production cost are quite competitive, and the risk resistance capability Obviously enhanced. The newly-built PVC industry "macrowarships" has entered the market one after another. In the near future, an annual production capacity of 1 million tons of "carrier" grade production companies will also come out one after another. The large-scale production equipment that will dominate will then lead the market.
Judging from the current development trend of PVC production, the era of small and medium-sized equipment products with low concentration, scattered distribution, and high production costs is about to end, and production will move toward high concentration and large-scale installations. At present, some PVC companies have begun to shift their exports. This year, exports may exceed 50,000 tons, which is also the highest level in recent years, indicating that the competitiveness of China's PVC resin in the international market is gradually increasing. The personage concerned predicts that China will not be far from becoming an exporter of PVC resin.
The PVC aircraft carrier is about to sail. Domestic PVC production, construction and consumption increase year by year
In recent years, China’s economic momentum has continued to rise. In particular, the rapid development of structural materials and decorative materials in the construction and packaging industry building materials has a great demand for polyvinyl chloride (PVC). Domestic PVC production and construction and consumption have increased year by year. In 1995, the demand was 1.87 million tons. It is expected that it will exceed 8 million tons in 2005 and become the world's largest consumer of PVC consumption. In 10 years, the net increase in consumption has exceeded 6 million tons. It is expected that China's PVC demand will increase by 8.3% from 2005 to 2010, and the total demand will reach 11.6 million tons by 2010. By then, China's total PVC demand will account for almost 22% of the world's total PVC demand; its share has doubled from 10 years ago.