SINGAPORE (ICIS news) -- A likelihood of oversupply and softening demand growth in the key China market has unleashed anxiety among chlor-alkali players in Asia, ahead of the 14th Asian Chlor-alkali Conference, which starts on Thursday in Shanghai, China.
However, strong performance of the Indian PVC market has provided a cause for cheer, they said. China's consumption of PVC was expected to hit 10.6m tonnes/year in 2010.
Demand growth for PVC in China was expected to slow further to 7.5% in 2011, amid a slowing down of the construction sector due to the government's measures to cool the economy.
Another reason to cheer is a decline in feedstock ethylene costs, which would improve stand-alone PVC producers' margins. Ethylene spot prices in northeast Asia were hovering at an eight-month low of $900-950/tonne (┬729-770/tonne) CFR (cost and freight) NE (north east) Asia last week, according to data from ICIS.