PVC exports from China to slow down in H2 2014

BEIJING (Scrap Monster): The PVC exports from China are likely to see sharp decline during second half of the year. The imposition of anti-dumping charges by major importing nations and ramping up of new production capacities elsewhere in the world may lower the demand in the remaining months of the year.

The country had exported more than double the quantity of PVC resin year-on-year during the initial seven-month period in 2014. According to data released by the Chinese General Administration and Customs, PVC resin exports by the country during January to July this year totaled 740,000 tons. The exports during the period have already surpassed the country’s total exports during the entire year 2013.

However, negative cues from two of the main importing nations-India and Russia suggests huge drop in exports going forward. India has risen multifold, the anti-dumping charges for Chinese PVC resin from $8-$45 per ton to as high as $91-$148 per ton.

The addition of new PVC facilities in Russia may lead to sizeable cut in Chinese exports to that country. The joint venture project led by Russian petrochemicals group Sibur is expected to begin commercial production at the 330,000-ton domestic PVC capacity in Kstovo towards end of the year. The Chinese exporting firms are reported to be facing immense competition from the rest of Asian countries, the US and Europe.