China PVC Powder Downstream Consumption Trend Forecast
The downstream products of PVC powder are mainly divided into three sectors. One is the real estate-related industries, which primarily include pipes, profiles, and flooring products. The second one is the daily necessities industry, which mainly involves films, and the third one is the medical industry, which mainly includes medical packaging. The future development trends of these industries vary.
Industries related to real estate, such as pipe and profile sectors, are facing a lukewarm demand outlook. From 2022 to 2023, the real estate industry data continued to decline, dragging down the overall demand for PVC powder products. The high-speed development phase of the real estate industry has come to an end, and market players will likely compete for shares within the existing market. In the next five years, it will be difficult for demand growth points related to real estate to emerge.
The outlook for PVC powder flooring products is largely influenced by overseas markets. In the past few years, the export volume of PVC powder flooring products increased rapidly, with the annual growth rate exceeding 20%. However, the exports significantly decreased at the beginning of 2022, and this downturn continued in 2023. This was both due to weak demand in overseas markets and the relocation of some of China’s flooring product producers to Southeast Asia. Although the export of PVC powder flooring products is expected to improve in the next five years, their growth is not expected to be as rapid as in previous years. On the domestic market side, as consumer perceptions require time to change, it is expected that there may not be a significant increase in domestic consumption volume of flooring products in the short term.
A slight increase is expected for film, which represents the daily necessities industry. PVC powder film is widely used in multiple industries, such as construction, electricity, agriculture, automotive, apparel, daily chemicals, food, etc. Its use in the building materials field is the most extensive, accounting for about 50% of demand, and the packaging industry accounts for about 35%. With the growth of the real estate market slowing down, the application of film in the building materials field is not expected to grow significantly. However, as the application scope of PVC powder film expands, its usage in agriculture and safety fields is expected to rise.
In the field of medical sheets, the future market is expected to be stable. This medical sheet market belongs to the high-end downstream applications of PVC powder, mainly used in medical and medical packaging fields. Due to the high-quality standards regarding fish eyes and impurities, ethylene-based PVC powder is often used as the feedstock of medical sheets. As the population grows older and the living quality of Chinese residents improves, the demand for medical supplies gradually increases, hence the market outlook for medical packaging is relatively optimistic. However, since sheet accounts for a relatively small proportion of PVC powder demand and there is a risk of substitution with PET, its role in driving overall PVC powder demand is limited.
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