October, 06 (plastemart.com) --
Worldwide
PVC demand declined by 8% in 2008, and is expected to decrease further in 2009 as per a report by
CMAI. Typically,
PVC
demand tracks GDP, albeit at a slightly faster pace, during periods of
both positive and negative GDP growth. By the summer of 2009, the
global economy was beginning to show signs of recovery in some
geographic regions, and CMAI expects worldwide PVC demand to get back
on a positive growth track.
The damage to
PVC
demand wrought by the recent economic recession is best illustrated by
recent market changes. Prior to the onset of the recession, the vinyls
market quickly absorbed additional capacity as plants came on-stream;
now, however, global operating rates have dropped significantly as
global consumption has fallen far behind a still growing capacity
volume. Early in the study period, the global market was undersupplied.
When the global economy contracted, capacity expansions continued
because most projects were too far along to stop; most of these
capacity expansions were and will continue to be located in China.
