In recent years, the production capacity of PVC Paste Resin has been increasing year by year. In 2023, the production capacity was 1.495 million tons, an increase of 16% compared to 1.29 million tons before the epidemic, presenting a situation of overcapacity. In addition, some enterprises will gradually withdraw from production capacity in the future, and the production capacity will show a trend of increasing and decreasing in the next five years.

The PVC paste Resin (60000 tons/year) plant of Jiyuan Jinxiang Materials Co., Ltd. was put into operation in 2023 and is currently operating normally.

There are 20000 tons of glove materials in Jinlu, Sichuan that have not been put into production yet, and the equipment is in place. The plan is postponed until after 2024.

China Salt Inner Mongolia Chemical Co., Ltd. has a capacity expansion plan of 20000 tons of PVC paste resin after 2024.

Tianjin Bohai Chemical Industry Co., Ltd. plans to build 60000 tons of lotion method+60000 tons of micro suspension method. The manufacturer plans to drive piles by the end of this year, and it is expected to be completed by 2025.

No one can predict the uncertain factors. Due to the impact of public health events in 2020, PVC gloves became the main product of medical supplies. The demand for PVC gloves drove domestic demand and export orders. PVC glove production lines were being built nationwide, and PVC paste resin became a hot product. PVC paste resin enterprises that had previously ceased production resumed production, while PVC paste resin enterprises that were in production expanded and built new ones, with production capacity reaching historical highs. According to statistics, the production capacity in 2020 was 1.425 million tons per year. From 2021 to 2022, the total production capacity of PVC paste resin enterprises was 1.535 million tons per year. In 2023, the PVC paste resin (60000 tons per year) of Jiyuan Jinxiang Materials Co., Ltd. was put into production in late July, and the production capacity increased again to 1.495 million tons.

It is expected that production capacity will first increase and then decrease from 2024 to 2028. In 2025, there will be more new production and capacity expansion enterprises. The later decline is mainly due to the gradual withdrawal of long-term parking enterprises from the market, resulting in a decrease in production capacity. However, production capacity is still in a relatively high stage, and it is expected that the utilization rate of future production capacity will be 60-70%, which is relatively low compared to previous years. Production will also be maintained around 1 million tons.