Research group CMAI is also forecasting demand growth

The PVC industry is emerging from several years of weak profitability, according to Chemical Market Associates, which is also predicting demand growth for the polymer.

The industry’s economic growth of 2.8% per annum in the 1999-2004 period is forecast to accelerate to 3.6% from 2004 to 2009. The US research group expects global PVC demand to grow at a rate of 4.1% per annum up to 2009, following a recovery this year.

In the next five years, China will be the key country for world demand and supply issues, said CMAI. Most of the new PVC capacity being planned for the next few years is set for China. CMAI’s 2005 World Vinyls Analysis covers the world’s PVC, VCM and EDC markets.