22 October, 2019
RALEIGH, North Carolina, October 22, 2019 - The global PVC market is currently estimated to be worth $41.4 billion and is growing at a CAGR of 4.7 percent till 2023, according to Beroe Inc, a procurement intelligence firm. The global demand for PVC is growing at a rate of 3.8 percent CAGR till 2023, with the current capacity estimated to be 61.6 MMT with a demand of 44.5 MMT. By 2023, the capacity is expected to reach 63.7 MMT with the demand of 51.6 MMT.
Asia is the largest consumer of PVC, accounting for about 58 percent of total demand at 40.6 MMT, followed by Europe accounting for about 17 percent at 8.2 MMT. Asia holds a majority of the capacity at 48 percent and has the highest demand growth at a CAGR of 4.2 percent, followed by North America with 13 percent capacity and demand growth of 3.4 percent CAGR. Asia and South America are likely to witness higher growth compared to other regions.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The major growth drivers for the PVC global market are its applications in construction, and electrical & electronics segments. PVC is used in construction for pipes, fittings, window/door frames, flooring solutions, roofing, irrigation pipes; in electronics for insulation purposes and in pharmaceuticals as tablet packaging. The PVC market faces challenges from the threat of substitutes, operating constraints, environmental concerns and a reducing market share in the medical industry.
Significant trends in the PVC market are the development of mercury-free catalysts of polymers, copolymerization of vinyls with olefins and development and use of new plasticizers. Mercury-free catalysts provide an economically available alternative to traditionally harmful mercury-based catalysts. Cross-linking of polymers leads to improved thermomechanical properties and chemical resistance.
The research methodology adopted for the report included:
The most impactful cost component is raw materials, accounting for 80 percent of costs in Asia, 79 percent in the EU and 78 percent in North America. The key pricing formulas are based on monomer contract prices and based on index prices. Pricing structure between a resin producer and a converter is monomer-based pricing, and in some cases, an index-based pricing structure. Producer margins are observed to be the highest in North America (20–25 percent), followed by Europe (15–18 percent) and Asia (12–15 percent).
The report also includes:
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