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PVC markets of Europe and South-East Asia: analysis of profitability and production cost


The goal of the work is a comparative analysis of production cost and contribution margin of ethylene-based PVC production facilities of Europe and South-East Asia.

The analysis revealed the following:

  • The European PVC production contribution margin varies from 56,7 to 247,9 Euro / ton of PVC (excluding PVC production at Râmnicu Vâlcea facility that is facing negative contribution margin) and averages at 136,45 Euro / ton of PVC subject to the current average capacity utilization level of 67%. The potentially achievable contribution margin considering existing technologies and prevailing prices – 190,85 Euro / ton of PVC.
  • PVC production contribution margin in South-East Asia is negative (−65,10 Euro / ton of PVC). It is caused by the low capacity utilization (52% in 2009, including 44% in China). Subject to the full capacity utilization under prevailing prices the PVC production contribution margin is estimated at 81,47 Euro / ton of PVC.


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