The hottest PVC market in Southeast Asia is not op

2022-08-23
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The PVC market in Southeast Asia is not optimistic.

Japan's Dongcao company recently released a situation investigation report, pointing out that the demand for PVC resin in Southeast Asia is still stagnant this year, with only a very slight increase. Therefore, Dongcao company decided to change the original plan of establishing a joint venture in the local area to establish a 100% wholly-owned enterprise, so as to enhance the mobility and dominance of the enterprise, and implement the company's development strategy of PVC supply chain in Southeast Asia by adjusting the enterprise system

the analysis report of Dongcao company pointed out that the demand of PVC market in Indonesia this year will increase by 20000 tons compared with last year, while that in the Philippines will increase by 10000 tons, only a small increase. This is mainly because the political situation in Indonesia and the Philippines has been in turmoil, so the economic development has stagnated, leading to the domestic demand for PVC may continue to be in the low state since the second half of last year

in 2000, Indonesia's domestic demand for PVC was 250000 tons, an increase of 50000 tons over 1999. Indonesia originally expected that the domestic PVC market demand situation would be bright in the first half of this year, but in fact, due to the unstable political situation and economic downturn, the market demand for PVC pipe fittings decreased, In addition, according to the original aluminum times, the price of resin increased, and the demand for PVC fell sharply in the first half of this year. The reduction of market demand made statomer company, which has an annual production capacity of 86000 tons, only reduce the operating rate, while statomer company produces vinyl chloride monomer (VCM), the raw material of PVC It is supplied by overseas manufacturers. Since this year, the price gap between PVC and VCM has become smaller and smaller, the production profit is very limited, and the company's operation is in trouble. SIP company, another PVC manufacturer in Indonesia, has sufficient operation and its actual output is 7000 tons more than its designed annual capacity, but more than half of it is exported to other countries, mainly because of its good product quality. Although the political situation in Indonesia has been turbulent for a long time this year, it has stabilized recently. The market situation is expected to improve in the second half of the year, which may lead to an increase in the demand for PVC. It is estimated that the annual demand for PVC is about 270000 tons, an increase of 20000 tons over last year

in 2000, the demand for PVC in the Philippines was about 100000 tons, and its market faced similar problems with Indonesia. In the first half of the year, the PVC market performed well due to the strong demand for water pipe fittings, while in the second half of the year, the demand fell rapidly due to political instability. As the current market situation is still chaotic and unclear, it can only be expected that the demand this year will increase by 10000 tons. Despite the sluggish market, PRII still improved its process by removing bottlenecks in February this year, increasing its annual production capacity from 70000 tons to 90000 tons; Then it plans to set up a new factory with a capacity of 70000 tons in the middle of 2002. However, many people are skeptical about the domestic market demand and the possibility of the liquidation of the experimental platform in the future, as the construction period of the new plant will take about 20 months. Most people in the industry believe that the situation is not optimistic. In view of this, Dongcao company originally planned to purchase 60% PRII shares for haoshe with a distance of 1.2~2mm from Mitsubishi merchants, which has been listed as a national strategic emerging industry and will be 100% funded, hoping to improve the flexibility of the enterprise and realize the development strategy of its PVC supply chain

in addition, phumy plastics and chemicals in Vietnam has recently restructured its ownership structure. Marubeni, another Japanese PVC manufacturer, announced earlier this year that it had suspended its cooperation with Vietnam for fear of oversupply

Marubeni was originally one of the partners of the joint venture. After the reorganization of phumy plastics and chemicals company, Malaysia's state-owned oil and gas company owns 50% of the shares, Vietnam's oil company owns 43% of the shares, and the remaining 7% of the shares are owned by a trading company in Vietnam. The design annual production capacity of PVC of the new joint venture is 100000 tons, and it is expected to be put into production in the second half of 2002. Petronas will provide vinyl chloride to the plant from Malaysia. In addition, Mitsui chemical company of Japan also has a PVC plant in Vietnam. In addition to the products of these two enterprises, there are many cheap imported PVC products in the Vietnamese market. It is estimated that the competition in the Vietnamese PVC market will be more intense in the future

in Thailand, the Thai plastics and chemicals company (TPC) recently announced that it would form a joint venture with Geon, a vinyl resin and copolymer manufacturer in the United States. The new joint venture, TPC Geon, will produce PVC copolymers in Thailand, and its products will be mainly exported to Asian countries and regions, including China

on the whole, the PVC market in Southeast Asia will not improve significantly in the second half of this year, especially at present, many spot prices from North America, Europe, Russia and the Middle East in the market are very low, and with the operation and production of new units in the future, the PVC market in Southeast Asia is likely to deteriorate further

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