Taiwan Province of China is one of the Asian petrochemical industry bases, and its PVC enterprises are concentrated in Taiwan Formosa Plastics, Huaxia Plastic, Dayang Plastic and other three major PVC manufacturers. The production capacity of the island is 1.31 million tons/year, 450 million tons/year, and 130,000 tons/year, with a total production capacity of 1.89 million tons.
Taiwan Province PVC imports less material, a small amount of imported from Japan and other countries; In addition to meeting domestic demand, PVC is mainly exported, among which Taiwan Formosa Plastics has the largest export volume, followed by Huaxia Plastic, with annual export volume exceeding 1.2 million tons. The main export regions are India, Southeast Asia and mainland China, accounting for about 45%, 30% and 15% respectively.
In 2021, the PVC import volume in Chinese mainland was 398,900 tons, of which 202,700 tons were imported from Taiwan Province, accounting for 50.81% of the total import volume. However, the general trade import volume was only 11,100 tons, accounting for 2.78% of the total import volume, accounting for 5.48% of the import volume from Taiwan Province, and the rest was in the form of supplied materials/imported materials processing.
From January to June 2022, the Chinese mainland imported 150,200 tons of PVC, of which 86,400 tons were imported from Taiwan Province, accounting for 57.55% of the total import. From the perspective of import trade, the import of general trade is still low, only 0.25 million tons, accounting for 1.66% of the total import volume, accounting for 2.88% of the import from Taiwan Province, the rest is still in the form of raw materials/imported materials processing.
In conclusion, due to the PVC supply completely exceeds the demand in mainland China and the export-oriented industrial pattern, import has little influence on mainland China, especially the low import dependence on Taiwan Province.
In price competition ways, thanks to cheap Chinese PVC international oil system have a competitive advantage, strong export competitiveness, since the second half of 2021, impact on the Asian market pricing power, quickly occupied the India market more than half of imports, backlog export market for Japan and South Korea, Taiwan, mainland China PVC export under the premise of price competition to keep advantage, Exports are still better than other countries or regions.
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Post time: Aug-04-2022