Prediction about PVC demand and trend in 2023
In 2022, PVC industry adjusted at the beginning and end of the year, with a sharp drop in the middle of the year. The profit of PVC industry is poor, In the second half of the year, PVC manufacturers have significantly decreased or stopped production. It is estimated that the capacity utilization of PVC in 2022 will higher than that in 2023, the whole year production will reach 2300 tons this year, besides, there are a heavy storage in future stock in 2022, also the supply of PVC will increasing in 2023. and the demand for PVC are expected to grow, which PVC pipe and PVC profile accounted a large scale.
According to the policy, 2023 will be a year what aims to develop domestic economy and accelerate consumption. Market demand for PVC is expected to climb around 6.7% year on year. The growth rate of traditional demand maintain 2%-3%; pipes used in infrastructure, packaging sheets, soft products and medical products are expected to lead the growth. Before 2022, PVC industry have high link with housing, the application of PVC industry mainly include pipe, profile ,windows and doors. While housing lasted a depression for a long time in 2022, the proportion of PVC downstream products industry in cable material, pipe material, sheet material and film material has certain increase.
In 2023, PVC supply will rise nationwide, but due to the growth rate of production expansion higher than that of the demand and worldwide economy increasing rate will relieved in 2023, China nationwide recovery speed will limited by the end industry. In terms of downstream, the competition of traditional profile, floor markets will increase, pipe and pipe fitting processing industry will continue to dominate the main demand for PVC. There are new development opportunities in cable material, film material and sheet material industries. Supply and demand pressure will decrease gradually as time going by, high inventory would improved in the second half of 2023.
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