H1 2023: In the first quarter of 2023, Vinyl Chloride Monomer (VCM) was majorly consumed by the Asia Pacific region. January onwards, VCM prices in Asia exhibited an optimistic trajectory, propelled by increased downstream momentum. Scarcity of inventories exerted upward pressure on commodity prices. The VCM market in the Asia-Pacific (APAC) region felt the impact of volatile feedstock prices, contributing to heightened cost pressures and subsequent price elevations during this period. By March 2023, varying consumer sentiments were observed, influenced by negotiable freight charges amid a global market downturn. Notably, a surge in demand from the construction sector, driven by anticipated higher consumption in the housing segment within the Asian market, emerged as the primary factor influencing VCM dynamics. However, April onwards, VCM prices in the Asia-Pacific market witnessed a decline primarily driven by subdued demand in the PVC production sector. The sluggish economic recovery in India contributed to a decrease in consumer buying enthusiasm within the country. Furthermore, the impact of muted offshore trading activities further influenced the pricing dynamics of VCM in India. Factors like lower feedstock Ethylene costs contributed to the decline in VCM prices in India. The China saw a downturn in the downstream PVC processing industry in China, accompanied by a decrease in exports.
The global Vinyl Chloride Monomer (VCM) market stood at approximately 47 million tonnes in 2022 and is anticipated to grow at a CAGR of 4.2% during the forecast period until 2032. The primary method for producing VCM relies on the ethylene feedstock route. In the ethylene process, EDC is generated through direct chlorination using chlorine and ethylene, and subsequently cracked to yield VCM. The VCM manufacturing process also generates by-product hydrogen chloride, commonly recycled to produce EDC through oxychlorination, involving additional ethylene. The final step involves polymerizing VCM to produce PVC.
Vinyl Chloride Monomer (VCM) plays a pivotal role as a chemical intermediate, primarily serving as a precursor for the production of polyvinyl chloride (PVC), a versatile and widely used plastic. The predominant application of VCM is in the creation of PVC, which finds extensive use in the construction industry for pipes, fittings, and various building materials known for their durability and corrosion resistance. Additionally, PVC, derived from VCM, is employed in packaging materials due to its flexibility and moisture resistance. In the electrical industry, VCM contributes to the production of PVC used in insulating cables and wiring, offering electrical insulating properties and flame resistance. The medical sector utilizes PVC derived from VCM for manufacturing tubing, containers, and flexible bags, benefiting from its compatibility with sterilization methods. Automotive applications, including interior materials, wire coatings, and seals, also leverage PVC produced from VCM. Moreover, PVC from VCM is widely utilized in the production of consumer goods such as clothing, footwear, bags, inflatable structures, and toys. This underscores the diverse applications and significance of VCM across various industries, making it an essential component in the manufacturing landscape with a broad impact on daily life and industrial processes.
The market for Vinyl Chloride Monomer (VCM) is strongly driven by the demand for PVC. The escalating global demand for PVC is fueled by factors such as population growth and urbanization. Renowned for its strength, moisture resistance, and abrasion resistance, PVC is an optimal choice for diverse applications, including cladding, roofing, and wall covering. Its versatility extends to the packaging industry, encompassing food, medical, and other sectors, owing to its durability, flexibility, and lightweight nature. Within medicine packaging, clear PVC film is utilized, while rigid film is employed in blister packaging to safeguard goods during transit. Its superior rigidity in comparison to PET makes it suitable for crafting disposable boxes, maintaining a desired shape. Furthermore, PVC's chemical resistance renders it valuable in the manufacturing of cosmetic containers, further contributing to its widespread utilization in different industries. The global Vinyl Chloride Monomer (VCM) market is anticipated to reach nearly 67 million tonnes by 2032.
Based on region, Asia Pacific region serves as the biggest consumer of Vinyl Chloride Monomer (VCM). The Asia Pacific region stands as the preeminent consumer of Vinyl Chloride Monomer (VCM), driven by dynamic economic factors. Rapid industrialization, particularly in key players like China and India, is fuelling the heightened demand for plastics, with VCM serving as an indispensable precursor for PVC production. The region's robust construction sector, propelled by extensive urbanization and infrastructure projects, accentuates the necessity for PVC applications like pipes & fittings, consequently intensifying the demand for VCM. China’s status as a manufacturing hub of plastics and the ongoing production of diverse consumer goods further solidifies its position as a significant consumer of VCM. With a burgeoning population and sustained economic growth, the region is strategically positioned for continued dominance in VCM consumption, mirroring its pivotal role in shaping the global industrial growth.
Based on the end-user industry, the global Vinyl Chloride Monomer (VCM) market is divided into Poly vinyl chloride (PVC) and Others. However, Poly vinyl chloride (PVC)is the largest consumer and held approximately 98% of the global Vinyl Chloride Monomer (VCM) market in 2022.
Notable players in the Global Vinyl Chloride Monomer (VCM) market are Erdos Chemical Group ChlorAlkali Chemical, Xinjiang Zhongtai Fukang Energy, Xinjiang Tianchen Chemical, Sinopec Qilu Petrochemical, Yibin Haifing Herui, Xinjiang Huatai Heavy Chemical, Tianjin Dagu Chemical, Anhui Huasu Co., Inner Mongolia Yili Chemical, Inner Mongolia Jilantai Salt Chemical, Tangshan Chlor Alkali, Tianjin LG DAGU, and Nanning Luzhou Chemical.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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Objective of the Study:
• To assess the demand-supply scenario of Vinyl Chloride Monomer (VCM) which covers production, demand and supply of Vinyl Chloride Monomer (VCM) market in the globe.
• To analyse and forecast the market size of Vinyl Chloride Monomer (VCM)
• To classify and forecast Global Vinyl Chloride Monomer (VCM) market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Vinyl Chloride Monomer (VCM) market in the globe.
To extract data for Global Vinyl Chloride Monomer (VCM) market, primary research surveys were conducted with Vinyl Chloride Monomer (VCM) manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Vinyl Chloride Monomer (VCM) market over the coming years.
ChemAnalyst calculated Vinyl Chloride Monomer (VCM) demand in the globe by analyzing the historical data and demand forecast which was carried out considering the production of raw material to produce Vinyl Chloride Monomer (VCM). ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Vinyl Chloride Monomer (VCM) manufacturers and other stakeholders
• Organizations, forums and alliances related to Vinyl Chloride Monomer (VCM) distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Vinyl Chloride Monomer (VCM) manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Vinyl Chloride Monomer (VCM) market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
47 million tonnes
Market size Volume in 2032
67 million tonnes
Growth Rate
CAGR of 4.2% from 2023 to 2032
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2032
Quantitative units
Demand in million tonnes and CAGR from 2023 to 2032
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Foreign Trade, Company Share, Manufacturing Process.
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Market Data & Insights
Table of Content
1. Industry Market Size
It is an essential metric for market analysis, as it provides insights into the overall size and growth potential of Vinyl Chloride Monomer (VCM) market in terms of value and volume.
2. Capacity By Company
On our online platform, you can stay up to date with essential manufacturers and their current and future operation capacity on a practically real-time basis for Vinyl Chloride Monomer (VCM).
3. Capacity By Location
To better understand the regional supply of Vinyl Chloride Monomer (VCM) by analyzing its manufacturers' location-based capacity.
4. Plant Operating Efficiency
To determine what percentage manufacturers are operating their plants or how much capacity is being currently used.
5. Production By Company [Quarterly Update]
Study the historical annual production of Vinyl Chloride Monomer (VCM) by the leading players and forecast how it will grow in the coming years.
6. Demand by End- Use [Quarterly Update]
Discover which end-user industry (Poly vinyl chloride (PVC) and Others) are creating a market and the forecast for the growth of the Vinyl Chloride Monomer (VCM) market.
7. Demand by Region
Analyzing the change in demand of Vinyl Chloride Monomer (VCM) in different regions, i.e., North America, Europe, Asia Pacific, Middle East and Africa, and South America, that can direct you in mapping the regional demand.
8. Demand by Sales Channel (Direct and Indirect)
Multiple channels are used to sell Vinyl Chloride Monomer (VCM). Our sales channel will help in analyzing whether distributors and dealers or direct sales make up most of the industry's sales.
9. Demand-Supply Gap
Determine the supply-demand gap to gain information about the trade surplus or deficiency of Vinyl Chloride Monomer (VCM).
10. Company Share
Figure out what proportion of the market share of Vinyl Chloride Monomer (VCM) is currently held by leading players across the globe.
11. Country-wise Export
Get details about quantity of Vinyl Chloride Monomer (VCM) exported by major countries.
12. Country-wise Import
Get details about quantity of Vinyl Chloride Monomer (VCM) imported by major countries.
13. Manufacturing Process
Discover insights into the intricate manufacturing process of Vinyl Chloride Monomer (VCM).
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What was the net market size of Vinyl Chloride Monomer (VCM) in terms of volume in 2022?
Ans:
The global market size of Vinyl Chloride Monomer (VCM) had reached approximately 47 million tonnes in 2022.
Q2.
Which industry is the major consumer of Vinyl Chloride Monomer (VCM)?
Ans:
Poly vinyl chloride (PVC) is the leading consumer of Vinyl Chloride Monomer (VCM) globally.
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