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TMR Analyzes Impact of Outbreak of COVID-19 on Polyvinyl Chloride PVC Market
Polyvinyl Chloride PVC Market
The global polyvinyl chloride (PVC) market was valued at ~US$ 63 Bn in 2018, and is anticipated to expand at a CAGR of ~4% from 2019 to 2027. PVC is used in packaging, owing to its excellent organoleptic properties. It does not impart any taint or taste to foodstuff. The global packaging market is driven by the rise in population, and growth in urbanization and trade. Globally, increasing online trade is further driving the demand for packaging. Products are also being consumed on-the-go. This is boosting the demand for food service packaging and different sizes of packaging. In turn, this is likely to fuel the global packaging market, and thereby propel the polyvinyl chloride market.
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Key Drivers of Polyvinyl Chloride Market
PVC offers excellent electrical insulation properties, making it ideal for cabling applications. It has good impact strength and is weatherproof, and is thus ideal for usage in construction products. PVC has received approval from the food contact and medical regulatory authorities in Europe. Therefore, polyvinyl chloride is commonly employed in packaging in food and healthcare industries.
Polyvinyl chloride is easy to process, long lasting, tough, and light. Therefore, it is ideal for usage in the building & construction industry. PVC consumes less primary energy during production as compared to other commodity plastics. The unique properties of polyvinyl chloride are driving its demand in different sectors such as construction, electrical & electronics, health care, footwear, and packaging.
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Shift toward Eco-Friendly PVC to Offer Attractive Opportunities
Ethylene-vinyl acetate (EVA) is the copolymer of ethylene and vinyl acetate. EVA is being used since several years, primarily in non-building materials, such as toys and athletic shoes. It is occasionally used as a protective film or binder. EVA is commonly employed in footwear components, flexible hoses, automobile bumpers, toys and athletic goods, molded automotive parts, flexible packaging, and films. It is flexible, resilient, and tough at low and moderate temperatures, and also crack-resistant.
Volatility in Prices of Raw Materials
The operating rates for chlorine have been low across most parts of Asia Pacific since the last few years due to production outages.
Ethylene is a major raw material used in the production of PVC. Volatility in the prices of ethylene poses a challenge to the demand-supply curve. Volatility in the prices of raw materials such as chlorine and ethylene leads to considerable volatility in the prices of PVC. The shift from conventional PVC to eco-friendly PVC such as EVA, PEVA, PVA and PVB is creating opportunities for the polyvinyl chloride market.
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Top Three Players Accounted for Major Market Share in 2018
Prominent players operating in the global polyvinyl chloride market include Shin-Etsu Chemical Co., Ltd., Formosa Plastics, Inovyn, ChemChina, Mexichem S.A.B. de C.V., Westlake Chemical Corporation, and Occidental Petroleum Corporation. The global reach of these companies and their focus on a wide range of end-user industries are responsible for their large share. Companies are engaged in efficient and well-developed planning and designing. They are investing in the development of new products that are eco-friendly and recyclable in order to meet customer requirements.
ChemChina is one of the top three producers of polyvinyl chloride in China; however, the company’s production is based on coal. The production capacity of its four PVC subsidiaries — Shenyang Chemical Co. (Shenyang, China), Dezhou Shihua Chemical Co. (Dezhou, China), Hebei Shenghua Chemical Industry (Zhangjiakou, China), and Haohua Yuhang Chemical Co. (Jiaozuo, China) — collectively exceeds 1 MMt per year of PVC and 1 MMt per year of caustic soda.
On November 28, 2016, Mexichem S.A.B. de C.V. acquired Vinyl Compounds Holdings Ltd., a leading U.K.-based manufacturer of technical polyvinyl chloride compounds that provides services to a wide range of industries such as building & construction, pipes & profiles, footwear, and consumer goods.
Global Polyvinyl Chloride Market: Research Scope
Polyvinyl Chloride Market by Type
Rigid
Flexible
Others
Polyvinyl Chloride Market by End-use industry
Construction
Electrical Cables
Packaging
Transportation
Others
Polyvinyl Chloride Market by Application
Pipes & Fittings
Profiles
Films & Sheets
Cables
Pastes
Others
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