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August 2, 2013
By: KERRY PIANOFORTE
Editor, Coatings World
Transparency Market Research (TMR) has published a report on the vinyl chloride monomer (VCM) market. VCM is a vital part of petrochemical industry and is mainly used for producing poly vinyl chloride (PVC), which is used in the construction and piping industry. It is also used in electrical, agriculturalvand heath care sectors. Other minor uses of VCM include manufacture of ethylene diamine for the production of resins and manufacture of chlorinated solvents. VCM is produced by hydro-chlorination of acetylene and the de-hydro-chlorination of ethylene dichloride. This process is polluting the environment and is highly energy consuming but the low cost of coal fields gives an advantage to China. The global VCM market is expected to grow at a moderate rate with a single digit compounded annual growth rate (CAGR). Asia is the largest consumer of VCM, contributing more than 50% of the total VCM consumption, followed by North America and Europe. The high demand for PVC is the major driving force for the VCM industry. Almost all the VCM produced globally is used for PVC production. The United States is the largest manufacturer of VCM owing to lower prices of feedstock and technological development, followed by China. VCM growth in developing countries is higher than developed countries as demand for PVC production is higher due to booming infrastructure in these countries. Substitution of PVC by traditional materials is the key driving force for the VCM industry. But lack of diversification in end-use industries and environmental and health issues will hinder the growth of industry in the near future. Technological development can overcome this barrier and many players in the market have already started taking initiatives in this regard. Other challenges faced by industry are volatility of feedstock prices and competition from other polyolefin’s hampering the VCMs capacity addition. VCM market is highly consolidated as top five companies contribute more than half of the total VCM production. Some of the leading participants in the VCM industry include Occidental Chemical Corporation, Dow Chemicals, and Georgia Gulf Corporation. The research report analyzes these markets depending on its market segments, major geographies, and current market trends. Geographies analyzed under this research report include North America Asia Pacific Europe Rest of the World The report provides comprehensive analysis of Market growth drivers Factors limiting market growth Current market trends Market structure Market projections for upcoming years The report is a complete study of current trends in the market, industry growth drivers, and restraints. It provides market projections for the coming years. It includes analysis of recent developments in technology, Porter’s five force model analysis and detailed profiles of top industry players. The report also includes a review of micro and macro factors essential for the existing market players and new entrants along with detailed value chain analysis.
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