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The outlook for polyvinyl chloride (PVC) in the global construction industry is bright for 2010 as housing starts recover and rise in the wake of the recession, according to new research from market research firm Chemsystems.

PVC to shine in global construction materials industry in 2010

"The Vinyl Chain Market Dynamics report notes that high-consumption countries with large populations, such as China and India, have made Asia a major driver of global PVC consumption growth. In addition, the growth of the Mexican market and the recovery of U.S. demand will support high growth rates in North America in the future. The report also points out that Western Europe has the lowest growth, mainly because per capita consumption in Western Europe is already high and GDP is in a low growth phase. In Eastern Europe and the Middle East, polyvinyl chloride is growing rapidly due to oil-rich resources. South America has seen demand growth due to rapid GDP and infrastructure growth.

While the report describes the growth of PVC (polyvinyl chloride) in China and the Middle East as "unprecedented," it also notes that the rapid growth in demand has outpaced the need for development. An emerging middle class in many Asian countries has led to huge formation in the housing and urban infrastructure sectors, resulting in double-digit growth for PVC in some parts of China. Currently, the growth in these regions is not sufficient to meet the growth in demand. As a result, the future economic development of these regions will continue to be dominated by imports.

The report also concludes that although the overall sales of PVC have a negative impact on the environment and safe production, the low price of PVC still reinforces its widespread use in construction materials. Some countries have legislated against the use of plastics containing PVC in childrens toys, and PVC consumption in food packaging has declined. But on the other hand, PVC is being used more often in other polymers as a good way to save costs. In addition, the substitution of PVC in some polyolefin cables and wires and its use in some construction sites has eased its growth in some areas. However, PVCs cost competitiveness in key construction sectors is expected to continue to grow.

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