Asian PVC Market

Update of PVC Situation in Asia-Pacific Region

Hitoshi Hori, Ph.D.
Secretary General, APVN
Chairman, International Affairs Subcommittee, VEC

 Overview of Asia Pacific Vinyl Network

PVC Market Topics in Asia-Pacific Region
Key Issues for Asia-Pacific
Window Profile Promotion in Japan

Asia Pacific Vinyl Network (APVN)

APVN is an organization of the polyvinyl chloride
(PVC) and support/related industries in the Asia
Pacific and neighboring regions.

Objective
To facilitate better understanding, representation and
management of environmental, safety and health issues
and perceptions relating to PVC in the Asia Pacific and
in each member country;
To help ensure the sustainability of the vinyl industry

Asia Pacific Vinyl Network (APVN)

Present Membership and Management
Full Members:
Australia (VCA) Korea (KOVEC) (2)

Singapore (1)

India (2)

Pakistan (1)

Taiwan (1)

Indonesia (3)

Malaysia (3)

Thailand (2)

Japan (VEC)

Philippines (1) Vietnam

China (CCAIA, as observer)

Associate Members:
Exxon Mobil, Tianjin Akzo Nobel Peroxides Co., Ltd, etc.
Management Team Members:
Chair; R.E.D. Purnama (Indonesia),
Vice-Chair; S. MacMillan (Australia), N. Sroysaard (Thailand)
Adviser; C. I. Tanglao (Philippines)
Secretary General; H. Hori (Japan)

APVN
(Cap. 8 MT)
Korea

Pakistan

Japan

China
10 MT< !!

Taiwan

India
+Chemplast

Thailand

Philippines

VinyThai
+70000t/a

Vietnam

Malaysia
Singapore
Indonesia

Australia

Market Topics
Australia

65% PVC in construction products

Strong growth in pipe, cable and flooring
Mandatory energy efficiency for homes
- uPVC window market poised to increase
market share from 1%

Indonesia

Business slowing down due to energy cost

PE pipes starting to penetrate the PVC market
government water supply companies, new
property projects

Philippines
Major waterworks utility companies and water
districts shifting to PE pipes

Pakistan
Share of PVC resin within total PVC demand

increased from 72%(2005) to 82% (2006)

Pipe sector is the driving force for total demand
growth. Growth rate expected to be around 25%
Shoe sector declining due to EVA substitution.
15% decline expected in 2006
Cable compound sector attracting new
investment based on import substitution

India

PVC business 40yrs old, flourishing since

last 7-8 years

PVC consumption growth (2005-2006):
27%
Domestic market likely to grow 10% in the
next 5 years
Pipes & fittings, profiles & calendering
major sectors with double digit growth
rates

China

The total production capacity of PVC resin was

about 8.5 million MT/Y in 2005
Now, 10 MMT/Y<
45% of the total was by using the AC process
About 80 companies produce PVC resin in China
Only 7 companies have large-scale production
sites such as more than 200,000 MT/Y (other
companies have less than 200,000 MT/Y-scale
production facility)
31% of total production capacity consists of
small- scale plants, less than 100,000 MT/Y
The Chinese Government announced phasing out of
small plants

Production & Shipment of PVC in Japan

Results of calendar year 2006

Total production : 2,105kt/y
Total shipment : 2,108kt/y
744kt/y

K to n

Domestic : 1, 364kt/y Export :

3,000

P roduction
2,500

2,000

Export

1,500

D om estic
Shipm ent

1,000

500

0
1976

78

80

82

84

86

88

90

92

94

96

98

00

02

04

06
ye ar

Issues Outline
Battle of PVC products vs. other plastics

Pressure against PVC use in packaging and films

PVC Pipe vs. Other Plastics Pipes

Green procurement programs / policies /standards

government programs
third party organizations (e.g. Green Building

Council)

Voluntary industry/customer programs (e.g.

electronics and auto industry programs)

Key Policy Issues

Increased attention to stabilizers (cadmium, lead)

Regulation of phthalate plasticizers

Need for industry efforts on

Promoting benefits of vinyl and developing

new markets

Recycling of PVC

International Policy Issues

Stockholm & Basel Conventions
EU Electric Cable Issue (WTO)
EU REACH

Asia & Pacific

PVC Pipe De-selection / Substitution

Water distribution companies/concessionaires

shifting to PE
Funding agencies influencing pipe material to
be used; some decisions also seen as political
in nature
Pipe promotion project planned to be jointly
undertaken with GVC, ECVM, VI and Uni-Bell

Japan
Respond to De-selection of PVC
1990s
HCl, dioxins, phthalates
2000s
Recycling
Consumer perception

Changing De-selection Policy

SONY;

postponed the phase-out deadlines for most of the cables

controlled substances list was revised and some items were deleted

RICOH;

Changed the level from banned substance to substance of regulated use in

their Green Procurement Standards for Imaging System Equipment Products

PANASONIC;

changed their attitude of total phase-out of PVC

continues to use PVC cable for the plasma display TV

MITSUBISHI ELECTRIC;

plans to change the PVC phase-out policy

TOYOTA;

New Green Procurement Guideline 2006(Mar 2006) keeps the policy of PVC
reduction (but no intension of further reduction)
Sustainability Report(Nov 2006) describes some examples of PVC substitution
under the same heading with Pb, Hg, Cd, Cr(VI)
adopted Eco-VAS (Eco-Vehicle Assessment System)

 SEIYU; 6th largest retailer in Japan

Wal-mart has the majority share

Influential to the Green Purchasing Network Japan
Intend to develop standards for the global Wal-mart group

SEKISUI HOUSE; leading company of prefabricated

houses

Plan to disclose the green procurement guideline next April

Originally intended to phase-out PVC wall paper
Didnt recognize the current situation of recycling technologies

MITSUBISHI ESTATE; leading estate developer

Understanding that the eco-cable is made of recycled material

and decided to use it for the new buildings
Reconsidering the current deselection policy

 Ministry of Land, Infrastructure and

Transport, Japan

Revised the Standards for the design of

buildings and equipment without any
description about the eco-cable and dioxins
But didnt inform the local governments of this
change
Interested in using PVC window frames in
government buildings
Looking for policy measures to improve the
energy efficiency of housing and buildings

Promotion of PVC Window Frames in Japan

PVC is a material to support sustainable society
Contribution to the reduction of CO2 emission

Material of Window Frames (2000)

PVC

PVC

Japan
Japan

7.7

France
France
US
China*?

aluminum
89.8

2.5
72.5

5.0

38.0

34.0

28.0

46.0

Germany
Germany

21.2

23.7

65.6
20%

16.0

38.0

55.1

Ireland
0%

aluminum

wood

22.5

China
China

wood

28.6

5.8
40%

60%

80%

100%

Source: Plastic Sash Industries Association (of Japan)

Growth of PVC Window Frames in Japan

30 years history; first window sold in 1975
5 0 ,0 0 0

1 ,0 0 0 ,0 0 0

unit

t
4 5 ,0 0 0

shipm ent(t)

9 0 0 ,0 0 0

4 0 ,0 0 0

building construction(-)

8 0 0 ,0 0 0

3 5 ,0 0 0

7 0 0 ,0 0 0

3 0 ,0 0 0

6 0 0 ,0 0 0

2 5 ,0 0 0

5 0 0 ,0 0 0

2 0 ,0 0 0

4 0 0 ,0 0 0

1 5 ,0 0 0

3 0 0 ,0 0 0

1 0 ,0 0 0

2 0 0 ,0 0 0

5 ,0 0 0

1 0 0 ,0 0 0

06

20

04

20

02

20

00

20

98

19

96

19

94

19

92

19

90

19

88

19

86

19

84

19

82

18

80

19

19

19

78

76

Government Support for PVC Window Frames

METI doubled the subsidy to $10 mil in 2007 budget
METI plans to introduce new energy efficiency marking
system

MOE installed PVC window frames to their building

MOE proposed tax incentives to housing reforms for better

energy efficiency in 2007

MOE co-sponsored the seminars for promotion

MLIT formulated the Plan to improve the energy efficiency

of houses in 10 years

METI: Ministry of Economy, Trade and Industry

MOE: Ministry of the Environment
MLIT: Ministry of Land, Infrastructure and Transport

Government Support for Promotion

Seminar on Energy,
Environment & Housing
co-sponsored by MOE & VEC
on October 12, 2005

At the Council of Ministers

Regarding Global
Environment Conservation
and Task Force on Global
Warming Measures

PVC Window Frame in the MOE Building

Action Program for 2007

Tax incentive for energy conservation reform
More PVC window frames in the government

buildings
Addition of PVC window frames to the government
procurement standards and lists
Higher energy efficiency standard
More Exposure on Mass Media
More collaboration with leading window frame
manufacturers
More collaboration with regional energy suppliers

2007 WCC , GVC & APVN Meetings

APVN

28-29 August

Stewardship Seminar
APVN General Assembly

Thailand

26-28 Sept

World Vinyl Forum III

Boston, USA

23-26 October

WCC General Assembly

India

28-29 October

WCC Governing Council

India

GVC

WCC