Market Associates, Inc. (CMAI), acquired by IHS Inc. (NYSE: IHS - www.ihs.com),
announces the completion of the 2012
World Vinyls Analysis.The annual global
market study covers past developments and future projections for supply,
demand, production, capacity, trade, pricing and profitability in the
global vinyls industry for the period 2006 to 2016. Included with each
analysis is 12 months access to CMAI's online capacity and supply/demand
databases with a mid-term supply/demand update incorporating CMAI's
latest market outlook. The analysis is a necessary resource for business
managers and planning professionals who need to make strategic business
decisions in a rapidly changing global economic and market environment.
The pace of the expansion in the global PVC market has been moderating
since the end of 2010 as government stimulus programs expired and public
spending decreased. The adoption of austerity measures, particularly in
Europe, further reduced activity in the construction sector. In many
emerging market economies, the growing threat of overheating in real
estate and construction led to the imposition of restrictive policy
measures and tighter monetary policy. Even the buoyant Chinese PVC
market is cooling somewhat.
The rapid recovery in PVC consumption moderated the adverse impact on
producers, resulting in fewer closures of vinyls facilities over the
past 12 months. The current wave of new Chinese PVC capacity will likely
exceed last year's estimates and lower global utilization rates in 2011.
Excess vinyls capacity and the resulting low utilization rates continue
to exert downward pressure on cash margins. While prices have increased
in response to rising energy and raw material costs, regional PVC
margins remain close to or even below their respective 2009 levels.
The current wide output gap in the global vinyls market is forecast to
persist through 2013 and narrow only gradually thereafter. The prolonged
global oversupply situation is creating a more competitive international
market environment that will force producers to become more cost
efficient or exit the market. Profitability even for integrated vinyls
producers is projected to remain at historically low levels, while cash
margins for non-integrated producers will likely be marginal or even
negative. Participation in the international market, consequently, will
be limited to cost advantaged producers.
Economic development and the associated rising living standards and
industrialization will remain the main drivers of vinyls consumption,
with vinyls demand closely tied to residential, non-residential and
public construction as well as infrastructure projects. Therefore, the
potential for future PVC demand growth is greatest in emerging market
economies with large population bases, such as China, India, Brazil and
Indonesia. In contrast, consumption in most developed countries will
likely rise only gradually from the still depressed levels in the
aftermath of the global recession.
Global vinyls trade is firmly on the road to recovery aided by growing
price differentials between regions. The trend toward greater
integration and declines in the number of stand-alone vinyls units is
not expected to be a limiting factor. Rather the lack of competitive
local production together with strong demand growth in the emerging
market economies will ensure a steady increase in exports of EDC and VCM.
To find out more about the current market issues and CMAI's outlook for
this industry, order the 2012 World Vinyls Analysis now at www.cmaiglobal.com.
The analysis is available in book and CD-ROM format, with access to
CMAI's Online Capacity and Supply/Demand databases. With updates to the
Capacity database as changes in the marketplace occur, and a bi-annual
update to the Supply/Demand database, clients benefit from up-to-date
market information necessary for strategic business decisions.
is the premier provider of Market,
Planning and Business Advisory services offering a unique
combination of consulting analytics and expertise for the global
chemical, plastics, fibers and chlor-alkali industries. With offices in
Houston, New York, London, Dubai, Düsseldorf, Bangkok, Singapore and
Shanghai, CMAI has provided expert business advisory services to a broad
range of companies across multiple value chains and geographies since
1979. Clients to CMAI services include companies in the following
industries: chemical & oil, technology & EPC; banking and financial
institutions; plastic converters; textile & apparel manufacturers;
brand-owners; grocers/retailers, government agencies; trading.
(NYSE: IHS) is the leading source of information and insight in critical
areas that shape today's business landscape, including energy and power;
design and supply chain; defense, risk and security; environmental,
health and safety (EHS) and sustainability; country and industry
forecasting; and commodities, pricing and cost. Businesses and
governments in more than 165 countries around the globe rely on the
comprehensive content, expert independent analysis and flexible delivery
methods of IHS to make high-impact decisions and develop strategies with
speed and confidence. IHS has been in business since 1959 and became a
publicly traded company on the New York Stock Exchange in 2005.
Headquartered in Englewood, Colorado, USA, IHS employs approximately
5,100 people in more than 30 countries around the world.
For more information on the 2012
World Vinyls Analysis,visit CMAI's website at www.cmaiglobal.com
Jamie Van Fleet
1401 Enclave Parkway, Suite 500
Houston, TX 77077 U.S.A.
Tel: 281-531-4660 Fax: 281-531-9966
Tel: 44 (0)20-7930-9818
Valhalla, New York