GBI Research is expecting global PVC demand to grow at a compound annual growth rate of 6.9% to reach around 64.3m tonnes in 2020.
GBI said: “The impact of global economic downturn has resulted in the slowdown in the construction industry worldwide. As more than 50% of the PVC is used in construction applications, there has been a downturn in the demand of PVC in many countries in the last few years. But as the economies recover from the recessionary times, the demand for PVC is expected to grow at a faster rate in the coming years to 2020.” The UK-based research group says in its PVC Global Market Dynamics to 2020 report that China is driving the majority of the demand for PVC in the world. For the Asian region as a whole, demand by for PVC in 2009 was nearly 16.7m tonnes, it says. GBI said: “The GDP of countries like China and India in Asia are growing at rates higher than the global GDP growth rates. Construction industry, which is the key market for PVC, is also growing very fast in these countries. The strong economic growth along with large population enables high growth rate in the consumption of PVC in these countries.” Europe is the second largest consumer of PVC in the world, with demand in 2009 estimated at 6.1m tonnes. In the same year, North American demand for PVC was close to 3.9m tonnes. PVC demand in South and Central America is growing steadily. This region consumed around 2.4m tonnes of PVC in 2009.