Analysis of China's polyvinyl chloride (PVC) market in 2022

Polyvinyl chloride, abbreviated as PVC, is a polymer formed by the polymerization of vinyl chloride monomer (VCM) with initiators such as peroxides and azo compounds, or under the action of light and heat, according to the mechanism of free radical polymerization. According to the different application ranges, PVC can be divided into: universal PVC resin, high degree of polymerization PVC resin, and cross-linked PVC resin. Universal PVC resin is formed by the polymerization of vinyl chloride monomer under the action of an initiator; High degree of polymerization PVC resin refers to a resin formed by adding chain growth agents to the polymerization system of vinyl chloride monomer; Crosslinked PVC resin refers to a resin formed by adding crosslinking agents containing dienes and polyenes to the vinyl chloride monomer polymerization system.

PVC classification

Due to the continuous improvement of the domestic economy, various industries have developed rapidly, especially the prosperity of the real estate industry, which has directly led to an increase in the consumption of PVC pipes and fittings; In recent years, sheet and film products have also emerged, with rapid expansion in demand in fields such as healthcare, food, packaging, toy products, swimsuits and products, automobiles, and home appliances. In 2021, China's PVC production reached 23.1 million tons, a year-on-year increase of 11.4%, and the demand reached 21.567 million tons, a year-on-year increase of 2.4%.

With the development of the national economy, the variety of plastic products continues to increase, expanding the application fields of PVC, and the consumption of plastic also continues to increase. The increase in demand further drives the continuous development and growth of the PVC industry. After the production capacity and output of the PVC industry increase, facing fierce market competition, the inherent quality of PVC products has become the lifeline of enterprises. At the same time, in order to reduce consumption and ensure efficiency, enterprise scale and integrated industrial chain management have become the mainstream trend and inevitable choice, and the original single production may gradually be squeezed out of the market. The increasingly severe situation of safety and environmental protection has become the primary problem faced by high energy consumption and high pollution enterprises. Backward and high pollution enterprises are gradually forced to withdraw or shut down. In 2021, there were a total of 71 production enterprises in China's polyvinyl chloride industry, and the industry is constantly changing, embarking on a development path of survival of the fittest, industrial clustering, significant growth in coastal and northwest areas, and stable and rational production capacity growth.

The main producers of PVC in China's market include Junzheng Group, Xinjiang Tianye, Zhongtai Chemical, Beiyuan Group, Sanyou Group, Chlor-alkali Chemical, etc. In 2021, Junzheng Group's PVC production reached 855700 tons and sales reached 856100 tons; The production of polyvinyl chloride in chlor alkali chemical reached 46700 tons, and the sales volume reached 45200 tons; Xinjiang Tianye completed 878400 tons of PVC production and 875400 tons of sales; Zhongtai Chemical's PVC production reached 1.9355 million tons and sales reached 1.899 million tons; Beiyuan Group's PVC production reached 1.2899 million tons and sales reached 1.2833 million tons; Sanyou Group's PVC production reached 361000 tons and sales reached 36900 tons.

In 2021, Junzheng Group's PVC production accounted for 3.70% of the total PVC production in China; The production of polyvinyl chloride in chlor alkali chemical industry accounts for 0.20% of the total production of polyvinyl chloride in China; Xinjiang Tianye's PVC production accounts for 3.80% of the total PVC production in China; Zhongtai Chemical's PVC production accounts for 8.38% of the total PVC production in China; Beiyuan Group's PVC production accounts for 5.58% of the total PVC production in China; Sanyou Group's PVC production accounts for 1.56% of the total PVC production in China. In 2021, six enterprises, including Junzheng Group, Chlor-alkali Chemical, Xinjiang Tianye, Zhongtai Chemical, Beiyuan Group, and Sanyou Group, accounted for 23.23% of the total PVC production in China. Currently, the market pattern of polyvinyl chloride in China is relatively scattered.