Post-flood rebuilding likely to boost PVC demand in 2023

KARACHI: Polyvinyl chloride (PVC) downstream market in the country is expected to witness an upward trend in the coming years in the aftermath of catastrophic floods and revival of CPEC-related activities, an industry official said on Thursday.

A recent report of Pakistan Credit Rating Agency (PACRA) has stated the local construction industry in the country to record a growth of 6 percent during the current year, which can be jumped to 92 percent as Pakistan enters into second phase of China-Pakistan Economic Corridor (CPEC).

“As a result, the demand for PVC applications and other construction materials is also likely to gain traction,” Muhammad Idrees, chief commercial officer of Engro Polymer and Chemicals Limited (EPCL) said.

He was of the view that the PVC downstream market in the country was expected to witness an upward trend in the coming years with growing consumer awareness about new construction materials and sustainability.

“To meet the market requirements, we have continued to scale our operations and completed plant expansion to 295,000 tonnes annually. Last year, we contributed $165 million in import substitution through local PVC and VCM production and generated $28 million in foreign exchange through exports,” idrees said.

He further mentioned that due to the country’s inherit advantages and close proximity to growing regional markets, there was huge export potential for PVC downstream products, which should be capitalised by local manufacturers.

“To promote the use of high-quality PVC downstream products, especially in the construction sector of Pakistan, EPCL was undertaking various market development initiatives and has made significant investment with its partners to launch a branded outlet called thinkPVC.”

Elaborating on the concept of thinkPVC outlet, he said that EPCL wanted to engage the construction industry and other associated stakeholders to highlight innovative construction materials, with a focus on sustainable materials such as PVC.

Currently, around 55 percent market share of PVC application in the country is held by pipes and fittings. The goal was to create wider awareness that PVC resin applications including the manufacturing of doors, windows, flooring, roofing, outdoor furniture, vanities, and other products, Idrees stated.

He shared that with increasing population, there was a dire need to adopt modern and innovative construction materials for sustainable living. “Compared to other materials, PVC is waterproof, termite and damage resistant, fire retardant, and a light-weight material, which offers high durability and requires minimal maintenance.”

“PVC is more sustainable as it has 50 percent lower carbon footprint as compared to aluminum, a competing product. It also has a much longer life span and is recyclable,” he added. The official claimed that consumers could save up to 28 percent in heating and cooling costs when using a double-glazed PVC window.

He believed that the future of PVC downstream market in the country remains promising as climate change tops the government agenda and more sustainable practices will be adopted by the construction industry.

“All sectors in Pakistan are expected to adopt greener solutions in line with the government policy of preserving natural resources and forests. PVC is a viable alternative to wood products, and we expect to see greater market penetration of PVC downstream products as the construction sector embraces a Go Green approach”, Idrees stated.