Jiangsu Dahai 2025: PVC Tech, Market & Industry Plans

Jiangsu Dahai Plastic Co., LTD., as an important enterprise in the domestic PVC Film industry, will have the following developments in terms of technological upgrading, market expansion and response to the industry environment in 2025:

1. Deepening digital management and optimizing production capacity

The SAP system upgrade project is continuously advancing: The SAP optimization and promotion project initiated in 2023 (covering Dahai Plastic and its subsidiary Houbang Industrial) will be further deepened in 2025. Through the implementation of equipment management and quality management modules, the automation level of production lines and the efficiency of the entire industrial chain will be enhanced, supporting the large-scale production of high-end PVC films (such as medical urine bag films and floor tile covering films).

Environmental protection production line expansion acceptance: The company's previously expanded environmental protection medical urine bag film and floor tile covering film production lines have passed the environmental impact assessment acceptance. They will continue to operate stably in 2025, with annual production capacities reaching 45,000 tons of PVC film and 2,000 tons of EVA/PEva Film respectively.

2. Industry competition and market challenges

The pressure on export policies has intensified: India's imposition of anti-dumping duties on Pvc Products (ranging from 82 to 167 US dollars per ton) and the extension of BIS certification until June 2025 have directly affected the export of Marine plastics to the Indian market. In 2023, India accounted for 31% of China's total PVC flooring product exports. Policy uncertainties have led enterprises to adjust their export strategies and shift to emerging markets such as Southeast Asia and Central Asia.

Domestic imbalance between supply and demand: By 2025, the new capacity of the PVC industry will exceed 2 million tons per year, with a total capacity growth rate of over 10%, intensifying the contradiction of oversupply in the market. As a leading enterprise in the industry, Dahai Plastic is confronted with the pressure of continuous price decline (spot prices have dropped below 4,700 yuan per ton) and low profits. It has to rely on the caustic soda business to balance the comprehensive income of the chlor-alkali integrated production line.

3. Technology research and development and patent layout

Technical advantages of medical PVC film: Relying on the "Patent Layout of Core Technologies for High-Performance PVC Materials" project (initiated in 2015), the company continuously optimizes the production technology of medical PVC granules and films. In 2023, three new invention patents were added. In 2025, the focus will be on promoting differentiated products such as low-temperature flame retardant and high-elasticity granular materials, which will meet the emerging demands of new energy vehicles and environmentally friendly packaging.

Strengthening environmental compliance: After the research conducted by the Nantong Municipal Ecological Environment Bureau in 2023, enterprises have further implemented environmental management systems. By 2025, they aim to pass the reviews of pollutant discharge permits, drainage network permits, etc., to ensure the compliance of the production of medical environmental protection PVC films.

4. Industry policies and macro environment Responses

In response to the "dual carbon" goals: The company has reduced production carbon emissions by upgrading biomass boilers and optimizing the energy management system, in line with the energy conservation and carbon reduction policy requirements for 2025.

Real estate drag down demand: 80% of the demand for PVC downstream is related to real estate. The new construction area of real estate in 2025 will still decline year-on-year. Enterprises are alleviating the weak demand for traditional building materials by expanding differentiated products (such as medical films and automotive protective films).

Summary

In 2025, the dynamic performance of Dahai Plastic in the PVC film field will feature "technological upgrading hedging market risks" : on the one hand, it will consolidate high-end markets such as medical films through digital transformation and patented technologies; On the other hand, multiple challenges such as overcapacity in the industry, tightened export policies and weak domestic demand need to be dealt with. In the future, enterprises need to further optimize their export structure and accelerate the research and development of high value-added products in order to maintain an advantage in the fierce competition.

Summary of relevant news and developments in the PVC film industry in 2025

Market supply and demand and capacity expansion

The supply pressure of PVC raw materials is increasing: From May to June 2025, the domestic PVC industry will witness a peak period of capacity expansion, with an additional capacity of approximately 2 million tons per year, and the total capacity growth rate may exceed 10%. Although the operating rate dropped during the spring inspection, it rebounded rapidly after the maintenance was completed. Coupled with the commissioning of new facilities, the oversupply situation of PVC has intensified.

Insufficient cost support: PVC prices have dropped to a ten-year low (spot prices have fallen below 4,700 yuan per ton), and enterprises using the external calcium carbide method have suffered losses of nearly 1,000 yuan per ton. However, as chlor-alkali integrated enterprises make up for the losses of PVC through the profits from caustic soda, the industry lacks the motivation to reduce production, and it is difficult to form effective support on the cost side.

Uncertainty in the export market

The impact of India's anti-dumping investigation: The PVC anti-dumping investigation initiated by India in 2024 is expected to announce the results in the second half of 2025, which may impose restrictions on China's exports. In 2023, the proportion of PVC raw materials and products exported from China to India was significant (for instance, flooring products accounted for 31% of the total exports). If the tariff policy tights, the downstream exports of PVC film will face pressure.

Short-term export data is impressive: From January to March 2025, China's PVC export volume increased by 55.94% year-on-year, with demand growth in Southeast Asia, Central Asia and other regions driving exports. However, due to the long-term influence of trade frictions and certification issues, the growth momentum of new orders is insufficient.

Weak downstream demand and industry transformation

Real estate drags down demand: 80% of the downstream demand for PVC is related to real estate. However, the real estate market will still be in a weak cycle in 2025, with sluggish new construction data and limited policy stimulus effects, resulting in the continuous weakness of demand for hard products such as PVC film.

Growth in demand for differentiated products: Despite sluggish traditional demand, special-purpose PVC films (such as low-temperature flame-retardant films) have become the direction of industry transformation due to technological upgrades and the expansion of applications in emerging markets (such as new energy vehicles and eco-friendly packaging).

Industry Challenges and Prospects

Short-term price fluctuations: Affected by the recovery of macro sentiment, the PVC futures price has stopped falling and started to rise. However, oversupply and weak demand are restricting the rebound space, and it is expected that there will be a lack of sustained upward momentum.

Long-term intensified competition: Capacity expansion has led to white-hot industry competition. Enterprises need to enhance their competitiveness through technological innovation (such as patented equipment) and export diversification (exploring markets outside the United States and India).