Ethylene Chloride exports have seen increasing anti-dumping risks abroad
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The main reasons for the rapid growth of PVC exports in Jiangsu Province in 2006 were:
First, it has a relatively obvious price advantage. More than 60% of China's polyvinyl chloride industry production capacity using calcium carbide production, compared with the internationally accepted ethylene production has obvious cost advantages, about 800 yuan per ton lower. In 2006, the high price of crude oil in the international market caused the production cost of ethylene to increase. The price advantage of PVC produced by the calcium carbide process in China was even more obvious, which stimulated the growth of PVC exports.
Second, the rapid development of PVC industry to promote export growth. On September 29, 2003, China imposed anti-dumping duties on imported polyvinyl chloride originating in the United States, South Korea, Japan, Russia, and Taiwan. Since the implementation of this policy, the investment in the domestic PVC industry has increased, further promoting the development of China's PVC industry. By 2005 China's PVC production reached 6.5 million tons, making it the world's largest PVC producer. According to the statistics of China's chlor-alkali industry association, the National Development and Reform Commission and other authoritative departments, in 2006 the number of business enterprises expanded to more than 90, with a production capacity of approximately 11.5 million tons. At present, domestic PVC consumption is only around 9 million tons, resulting in domestic polychlorinated chlorine. With a large excess of ethylene production capacity, companies have to turn their attention to the international market.
It is worth noting that with the continued increase in the volume of PVC exports, China's PVC industry will gradually increase the risk of foreign anti-dumping. Due to a large excess of domestic production capacity, companies have to turn their attention to limited international markets, export competition is extremely fierce, and the disorderly competition such as grabbing customers and reducing prices has occurred from time to time, causing the export price of PVC to fall. Jiangsu Province, 2006 The export price of vinyl chloride (US$792/t) was significantly lower than the import price of US$920/t during the same period. Therefore, as export prices continue to fall, the risk of exporting PVC to foreign anti-dumping is increasing. In June 2006, India had formally initiated an anti-dumping investigation of suspension-grade polyvinyl chloride exported to China.