Demand for PVC in the Americas is expected to rise slowly over the next 10 years, at a compound annual growth rate (CAGR) of 0.3%, driven mostly by the construction sector, according to GBI Research (www.gbiresearch.com). The market research company predicts that demand will rise from 6.10m t in 2010 to 6.28m t in 2020. For the vinyls market as a whole, demand in the region is expected to grow by 1% per year over the 10-year period, from 28.4m t in 2010, aided by higher growth rates for VAM and EVA.

PVC demand in the Americas declined significantly in 2008 and 2009 as a result of the impact of the global economic slowdown of the construction sector, which accounts for approximately 73.6% of PVC demand in the region. Following a plateau in PVC demand in 2010 and 2011, a slow recovery is forecast from 2012, GBI Research says in its new report, “Vinyls market in the Americas to 2020 – sustained PVC demand to boost revenues.”

Production of PVC in the Americas is forecast to grow at a CAGR of 0.9%, from 7.84m t in 2010 to 8.57m t in 2020. Regional demand for intermediate products EDC and VCM is expected to rise at a CAGR of 0.9% to 2020, GBI Research says. Higher growth rates are predicted for VAM and EVA. Demand for VAM is expected to grow by 2.8% per year, reaching 1.18m t in 2020, the report says. EVA demand is forecast to grow by 6.1% per year to 1m t in 2020.

Last year, the USA accounted for 83.1% of total vinyls demand in the Americas. Brazil is the second largest market with 7.1%, followed by Mexico with 4.9%, Canada with 2.8% and Argentina with 2.1%. The North American vinyls market is close to maturity and has low scope for growth, while the South and Central American markets are growing faster, the report adds.