PVC market forecast for the second half year

In 2022, PVC production capacity is expected to continue to grow .


In the first half of the year, Dezhou Shihua produced 200,000 tons of ginger bell process, and Hebei Cangzhou Julong Chemical 400,000 tons of ethylene process was put into production at the end of June. Looking forward to the second half of the year, Shandong Gulf Chemical 200,000 tons, Guangxi Qinzhou 400,000 tons will be put into production, and Xinfa 400,000 tons before the end of the year is still waiting.  Shaanxi Jintai 600,000 tons expected to delay next year’s mass production.


In conclusion, the scale of PVC production capacity added in 2022 is slower than that in previous years, but the growth rate is still up to about 6% compared with the previous two years. In particular, ethylene method accounts for a large proportion of the new production capacity, which will put certain pressure on the traditional calcium carbide method in the market supply.


The PVC demand environment turned weak in 2022


China’s PVC exports maintained a good growth trend in the first half of 2022, with total exports exceeding 1.24 million tons from January to June, more than 140,000 tons compared with 1.1 million tons in the first half of 2021, and more than 590,000 tons compared with 650,000 tons in the second half of 2021.  Consider the second half of the supply and demand situation abroad, especially as the inflation bring a weaker demand, the United States because of the high inventories of the order was cancelled, the global export market pay more attention to India, China, Asia PVC price repressed cost line, range of balance, or by the ocean carrier cargo competition and be broken, that price competition export or lead to less than the first half of the year.


Real estate new construction data and financing data, year-on-year decline, especially in July, the typical housing enterprise financing for four consecutive months, it is difficult to support the second half of the real estate new construction data brought by the new demand.  To some extent, the domestic policy on the insurance exchange building will be favorable to the recovery of gold market demand in September. Considering the slowdown of global economic growth, the United Nations also released the latest “World Economic Situation and Outlook in 2022″ at the end of June, and it is estimated that the global economic growth rate is only 3.1% this year;  Plastic products will be affected in both domestic and international export markets.


Overall, although the PVC domestic demand environmental policy in the second half of the year has a positive positive, better than the first half of the year, but the actual market demand or compared with the same period last year appeared weaker situation.


As a global Polyvinyl chloride supplier, Zibo Junhai Chemical has rich experiences in the properties, applications, and cost-effective manufacturing of pvc resin.  If you need Polyvinyl chloride please feel free to contact us.

Post time: Aug-11-2022