China's PVC export to fill the gap to price competition

Abstract

[China's PVC export to fill the gap and turn to price competition] in 2021, China's PVC export ushered in a new height in history, with an annual export volume of 1.7538 million tons, far higher than the 1.0389 million tons in 2016. Since the fourth quarter of 2020, since the world's largest PVC exporter - the United States suffered from force majeure, China, the world's largest PVC producer, has ushered in the best export period. Superimposed on the cold wave of the Spring Festival in 2021, the U.S. export gap has continued from the fourth quarter of 2020 to the third quarter of 2021.

In 2021, China's PVC export ushered in a new height in history. The annual export volume reached 1753800 tons, far higher than 1038900 tons in 2016. Since the fourth quarter of 2020, since the world's largest PVC exporter - the United States suffered from force majeure, China, the world's largest PVC producer, has ushered in the best export period. Superimposed on the cold wave of the Spring Festival in 2021, the U.S. export gap has continued from the fourth quarter of 2020 to the third quarter of 2021.

As the world's largest importer, India needs to import more than 1.5 million tons of PVC every year. In recent years, India's economy has developed rapidly and its import demand has been increasing. Affected by the force majeure of the United States and the reduction of exports, China has opened up opportunities for exporting PVC to India. From March to April 2021, Indian customers were worried about the shortage of global supply and the rise in prices. A large number of PVC products were imported from India, as can be seen from the figure below. In 2022, the price of Chinese products was at the low point of the global price, and the anti-dumping tariff on PVC originating from China expired in February. With the price advantage, Chinese PVC quickly occupied the Indian market.

China is the world's largest producer, while India is the world's largest importer. There is a huge space for cooperation between the two; Excluding the previous trade anti-dumping, China's PVC export has changed from taking advantage of the global supply gap to splicing the global price advantage. On the one hand, China's domestic market is in urgent need of export in the short term to alleviate the domestic supply pressure, on the other hand, some enterprises turn their PVC sales to foreign countries to improve their own trade system.