Polyvinyl Chloride (PVC)

A Project Report on
Commodity Market & Futures
Of
Petrochemical (PVC)

SUBMITTED BY

Exam No Name
02

Desai Gunjan

SUBMITTED TO:-

Prof. Mittal Dattani

GANPAT UNIVERSITY
Center for Management Studies

Ahmedabad

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Polyvinyl Chloride (PVC)

TABLE OF CONTENTS FOR PROJECT REPORT

Particular

Page
No.

Title Page
1

Chapter-1

Introduction of Petrochemical
2

Chapter-2

Overview of Polyvinyl chloride (PVC)

3

Chapter-3

20

Polyvinyl Chloride Price Fluctuation

4

Chapter-4

22

Bibliography

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Polyvinyl Chloride (PVC)

Chapter-1
OVERVIEW:Petrochemicals are chemical products derived from petroleum.
Some chemical compounds made from petroleum are also obtained from other fossil fuels, such
as coal or natural gas, or renewable sources such as corn or sugar cane.
The two most common petrochemical classes are olefins (including ethylene and propylene)
and aromatics (includingbenzene, toluene and xylene isomers). Oil refineries produce olefins and
aromatics by fluid catalytic cracking of petroleum fractions. Chemical plants produce olefins
by steam

cracking of natural

gas

liquids like ethane and propane. Aromatics are

produced

by catalytic reforming of naphtha. Olefins and aromatics are the building-blocks for a wide range
of

materials

such

as solvents, detergents,

and adhesives.

Olefins

are

the

basis

for polymers and oligomers used in plastics, resins, fibers,elastomers, lubricants, and gels.
Global ethylene and propylene production are about 115 million tonnes and 70 million tonnes
per annum, respectively. Aromatics production is approximately 70 million tonnes. The largest
petrochemical industries are located in the USA andWestern Europe; however, major growth in
new production capacity is in the Middle East and Asia. There is substantial inter-regional
petrochemical trade.
Primary petrochemicals are divided into three groups depending on their chemical structure:

Olefins include ethylene, propylene, and butadiene. Ethylene and propylene are important
sources of industrial chemicals and plastics products. Butadiene is used in makingsynthetic
rubber.

Aromatics include benzene, toluene, and xylenes. Benzene is a raw material for dyes and
synthetic detergents, and benzene and toluene for isocyanates MDI and TDI used in
making polyurethanes. Manufacturers use xylenes to produce plastics and synthetic fibers.

Synthesis

gas is

a mixture of carbon

monoxide and hydrogen used

to

make ammonia and methanol.

Ammonia is used to make the fertilizer urea and methanol is used as a solvent
and chemical intermediate.

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Polyvinyl Chloride (PVC)

The prefix "petro-" is an arbitrary abbreviation of the word "petroleum"; since "petro-"
is Ancient Greek for "rock" and "oleum" means "oil". Therefore, the etymologically correct term
would be "oleochemicals". However, the term oleochemical is used to describe chemicals
derived from plant and animal fats.

Sources

Petrochemical feedstock sources

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Polyvinyl Chloride (PVC)

The adjacent diagram schematically depicts the major hydrocarbon sources used in producing
petrochemicals are:

Methane, ethane, propane and butanes:

Obtained

primarily

from natural

gas

processing plants.

Naphtha obtained from petroleum refineries.

Benzene, toluene and xylenes, as a whole referred to as BTX and primarily obtained
from petroleum refineries by extraction from the reformate produced in catalytic
reformers.

Gas oil obtained from petroleum refineries.

Methane and BTX are used directly as feedstocks for producing petrochemicals. However,
the ethane, propane, butanes, naphtha and gas oil serve as optional feedstocks for steamassisted thermal crackingplants referred to as steam crackers that produce these intermediate
petrochemical feedstocks:

Ethylene

Propylene

Butenes and butadiene

Benzene

In 2007, the amounts of ethylene and propylene produced in steam crackers were about
115 Mt(megatonnes) and 70 Mt, respectively. The output ethylene capacity of large
steam crackers ranged up to as much as 1.0 1.5 Mt per year.
Steam crackers are not to be confused with steam reforming plants used to
produce hydrogen and ammonia.

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Polyvinyl Chloride (PVC)

Manufacturing Location:Like commodity chemicals, petrochemicals are made on a very large scale. Petrochemical
manufacturing units differ from commodity chemical plants in that they often produce a number
of related products. Compare this with specialty chemical and fine chemical manufacture where
products are made in discrete batch processes.
Petrochemicals are predominantly made in a few manufacturing locations around the world, for
example in Louisiana in the USA, in Teesside in the Northeast of England in theUnited
Kingdom, in Rotterdam in the Netherlands and in Jamnagar & Dahej in Gujarat India. Not all of
the petrochemical or commodity chemical materials produced by the chemical industry are made
in one single location but groups of related materials are often made in adjacent manufacturing
plants to induce industrial symbiosis as well as material and utility efficiency and other
economies of scale. This is known in chemical engineering terminology as integrated
manufacturing. Speciality and fine chemical companies are sometimes found in similar
manufacturing locations as petrochemicals but, in most cases, they do not need the same level of
large scale infrastructure (e.g., pipelines, storage, ports and power, etc.) and therefore can be
found in multi-sector business parks.
The large scale petrochemical manufacturing locations have clusters of manufacturing units that
share utilities and large scale infrastructure such as power stations, storage tanks, port facilities,
and road and rail terminals. In the United Kingdom for example, there are 4 main locations for
such manufacturing: near the River Mersey in Northwest England, on the Humber on the East
coast of Yorkshire, in Grangemouth near the Firth of Forth in Scotland and in Teesside as part of
the Northeast of England Process Industry Cluster (NEPIC). To demonstrate the clustering and
integration, some 50% of the United Kingdom's petrochemical and commodity chemicals are
produced by the NEPIC industry cluster companies in Teesside.

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Polyvinyl Chloride (PVC)

Petrochemicals products
Petrochemicals

Fibers

Petroleum

Chemicals

Lubricants
Additives
Catalysts
Marine fuel oil
Petroleum refining

Adhesives and sealants

Agrochemicals
Construction chemicals
Corrosion control chemicals
Cosmetics raw materials
Electronic chemicals and materials
Flavourings, fragrances, food additives
Pharmaceutical drugs
Specialty and industrial chemicals
Specialty and industrial gases
Inks, dyes and printing supplies
Packaging, bottles, and containers
Paint, coatings, and resins
Polymer additives
Specialty and life sciences chemicals
Surfactants and cleaning agents

Basic Feedstock
Benzene
Butadiene
Ethylene
p-Xylene
Propylene
Intermediates
2-Ethylhexanol (2-EH)
Acetic acid
Acrylonitrile (AN)
Ammonia
Bis(2-ethylhexyl)
phthalate (dioctyl
phthalate)
n-Butene
Cyclohexane
Dimethyl
terephthalate (DMT)
Dodecylbenzene
Ethanol
Ethanolamine
Ethoxylate
1,2Dichloroethane (ethylene
dichloride or EDC)
Ethylene glycol (EG)
Ethylene oxide (EO)
Formaldehyde Moulding
Compound (FMC)
n-Hexene
Linear alkyl
benzene (LAB)
Methanol
Methyl tert-butyl
ether (MTBE)
Phenol
Propylene oxide
Purified terephthalic
acid (PTA)
Styrene monomer (SM)
Thermosetting Resin
(Urea/Melamine)
Vinyl acetate
monomer (VAM)
Vinyl chloride
monomer (VCM)

M.B.A. Sem-4 (FS)

Acrylic fiber
Acrylonitrile butadiene
styrene(ABS)
Acrylonitrile styrene (AS)
Polybutadiene (PBR)
Polyvinyl chloride (PVC)
Polyethylene (PE)
Polyethylene
terephthalate (PET)
Polyol
Polypropylene (PP)
Polystyrene (PS)
Styrene butadiene (SBR)
Acrylic-formaldehude (AF)

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Polyvinyl Chloride (PVC)

Chapter-2
Introduction:Polyvinyl chloride:Polyvinyl

chloride,

abbreviated PVC,

is

more
the

correctly

but

third-most

unusually
widely

poly(vinyl

produced

chloride),

commonly

synthetic plastic polymer,

after polyethylene and polypropylene.

PVC comes in two basic forms: rigid (sometimes abbreviated as RPVC) and flexible. The rigid
form of PVC is used in construction for pipe and in profile applications such as doors and
windows. It is also used for bottles, other non-food packaging, and cards (such as bank or
membership cards). It can be made softer and more flexible by the addition of plasticizers, the
most widely used being phthalates. In this form, it is also used in plumbing, electrical cable
insulation, imitation leather, signage, inflatable products, and many applications where it
replaces rubber.
Pure poly (vinyl chloride) is a white, brittle solid. It is insoluble in alcohol but slightly soluble
in tetrahydrofuran.

Discovery:PVC was accidentally synthesized in 1872 by German chemist Eugen Baumann. The polymer
appeared as a white solid inside a flask of vinyl chloride that had been left exposed to sunlight.
In the early 20th century the Russian chemist Ivan Ostromislensky and Fritz Klatte of the
German chemical company Griesheim-Elektron both attempted to use PVC in commercial
products, but difficulties in processing the rigid, sometimes brittle polymer thwarted their
efforts. Waldo Semon and the B.F. Goodrich Company developed a method in 1926
to plasticize PVC by blending it with various additives. The result was a more flexible and more
easily processed material that soon achieved widespread commercial use.

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Polyvinyl Chloride (PVC)

Production:Polyvinyl chloride is produced by polymerization of the vinyl chloride monomer (VCM), as
shown.

About

80%

of

production

involves suspension

polymerization. Emulsion

polymerization accounts for about 12% and bulk polymerization accounts for 8%. Suspension
polymerization affords particles with average diameters of 100180 m, whereas emulsion
polymerization gives much smaller particles of average size around 0.2 m. VCM and water are
introduced into the reactor and a polymerization initiator, along with other additives. The
reaction vessel is pressure tight to contain the VCM. The contents of the reaction vessel are
continually mixed to maintain the suspension and ensure a uniform particle size of the PVC
resin. The reaction is exothermic, and thus requires cooling. As the volume is reduced during the
reaction (PVC is denser than VCM), water is continually added to the mixture to maintain the
suspension.

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Polyvinyl Chloride (PVC)

The polymerization of VCM is started by compounds called initiators that are mixed into the
droplets. These compounds break down to start the radical chain reaction. Typical initiators
include dioctanoyl peroxide and dicetyl peroxydicarbonate, both of which have fragile O-O
bonds. Some initiators start the reaction rapidly but decay quickly and other initiators have the
opposite effect. A combination of two different initiators is often used to give a uniform rate of
polymerization. After the polymer has grown by about 10x, the short polymer precipitates inside
the droplet of VCM, and polymerization continues with the precipitated, solvent-swollen
particles. The weight average molecular weights of commercial polymers range from 100,000 to
200,000 and the number average molecular weights range from 45,000 to 64,000.
Once the reaction has run its course, the resulting PVC slurry is degassed and stripped to remove
excess VCM, which is recycled. The polymer is then passed through a centrifuge to remove
water. The slurry is further dried in a hot air bed, and the resulting powder sieved before storage
or pelletization. Normally, the resulting PVC has a VCM content of less than 1 part per million.
Other production processes, such as micro-suspension polymerization and emulsion
polymerization, produce PVC with smaller particle sizes (10 m vs. 120150 m for suspension
PVC) with slightly different properties and with somewhat different sets of applications.

Microstructure
The polymers are linear and are strong. The monomers are mainly arranged head-to-tail,
meaning that there are chlorides on alternating carbon centers. PVC has mainly anatactic
stereochemistry, which means that the relative stereochemistry of the chloride centres are
random. Some degree of syndiotacticity of the chain gives a few percent crystallinity that is
influential on the properties of the material. About 57% of the mass of PVC is chlorine. The
presence of chloride groups gives the polymer very different properties from the structurally
related material polyethylene.

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Polyvinyl Chloride (PVC)

Physical Properties:PVC is a thermoplastic polymer. Its properties are usually categorized based on rigid and flexible
PVCs.

Property

Rigid PVC

Flexible PVC

Density [g/cm3][13]

1.31.45

1.11.35

Thermal conductivity [W/(mK)][14]

0.140.28

0.140.17

Yield strength [psi][13]

45008700 14503600

Young's modulus [psi]

490,000[15]

Flexural strength (yield) [psi]

10,500[15]

Compression strength [psi]

9500[15]

Coefficient of thermal expansion (linear) [mm/(mm C)] 5105[15]

Vicat B [C][14]

65100

Not recommended

Resistivity [ m][16][17]

1016

10121015

Surface resistivity [][16][17]

10131014

10111012

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Polyvinyl Chloride (PVC)

Mechanical properties
PVC has high hardness and mechanical properties. The mechanical properties enhance with the
molecular weight increasing but decrease with the temperature increasing. The mechanical
properties of rigid PVC (uPVC) are very good; the elastic modulus can reach 1500-3,000 MPa.
The soft PVC (flexible PVC) elastic is 1.5-15 MPa. However, elongation at break is up to 200450%. PVC friction is ordinary; the static friction factor is 0.4-0.5, and the dynamic friction
factor is 0.23.

Thermal and fire properties

The heat stability of raw PVC is very poor, so the addition of a heat stabilizer during the process
is necessary in order to ensure the product's properties. PVC starts to decompose when the
temperature reaches 140 C, with melting temperature starting around 160 C. The linear
expansion coefficient of rigid PVC is small and has good flame retardancy, the Limiting oxygen
index (LOI) being up to 45 or more. The LOI is the minimum concentration of oxygen,
expressed as a percentage that will support combustion of a polymer and noting that air has 20%
content of oxygen.

Electrical properties
PVC is a polymer with good insulation properties, but because of its higher polar nature the
electrical insulating property is inferior to non polar polymers such as polyethylene
and polypropylene.
Since the dielectric constant, dielectric loss tangent value, and volume resistivity are high, the
corona resistance is not very good, and it is generally suitable for medium or low voltage and
low frequency insulation materials.

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Polyvinyl Chloride (PVC)

Application:PVC's relatively low cost, biological and chemical resistance and workability have resulted in it
being used for a wide variety of applications. It is used for sewerage pipes and other pipe
applications where cost or vulnerability to corrosion limit the use of metal. With the addition of
impact modifiers and stabilizers, it has become a popular material for window and door frames.
By adding plasticizers, it can become flexible enough to be used in cabling applications as
a wire insulator. It has been used in many other applications. In 2013, about 39.3 million tonnes
of PVC were consumed worldwide. PVC demand is forecast to increase at an average annual rate
of 3.2% until 2021.

Pipes:-

Roughly half of the world's polyvinyl chloride resin manufactured annually is used for producing
pipes for municipal and industrial applications.In the water distribution market it accounts for
66% of the market in the US, and in sanitary sewer pipe applications, it accounts for 75%.Its
light weight, low cost, and low maintenance make it attractive. However, it must be carefully
installed and bedded to ensure longitudinal cracking and overbelling does not occur.
Additionally, PVC pipes can be fused together using various solvent cements, or heat-fused
(butt-fusion process, similar to joining HDPE pipe), creating permanent joints that are virtually
impervious to leakage.

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Polyvinyl Chloride (PVC)

In February, 2007 the California Building Standards Code was updated to approve the use
of chlorinated polyvinyl chloride (CPVC) pipe for use in residential water supply piping systems.
CPVC has been a nationally accepted material in the US since 1982; California, however, has
permitted only limited use since 2001. The Department of Housing and Community
Development prepared and certified anenvironmental impact statement resulting in a
recommendation that the Commission adopt and approve the use of CPVC. The Commission's
vote was unanimous and CPVC has been placed in the 2007 California Plumbing Code.
In the United States and Canada, PVC pipes account for the largest majority of pipe materials
used

in

buried

municipal

applications

for drinking

water distribution

and wastewatermains. Buried PVC pipes in both water and sanitary sewer applications that are 4
inches (100 mm) in diameter and larger are typically joined by means of a gasket-sealed joint.
The most common type of gasket utilized in North America is a metal reinforced elastomer,
commonly referred to as a Rieber sealing system.

Electric cables:PVC is commonly used as the insulation on electrical cables; PVC used for this purpose needs to
be plasticized.
In a fire, PVC-coated wires can form hydrogen chloride fumes; the chlorine serves to
scavenge free radicals and is the source of the material's fire retardance. While HCl fumes can
also pose a health hazard in their own right, HCl dissolves in moisture and breaks down onto
surfaces, particularly in areas where the air is cool enough to breathe, and is not available for
inhalation. Frequently in applications where smoke is a major hazard (notably in tunnels and
communal areas) PVC-free cable insulation is preferred, such as low smoke zero
halogen (LSZH) insulation.

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Polyvinyl Chloride (PVC)

Unplasticized poly (vinyl chloride) (uPVC) for construction:-

uPVC, also known as rigid PVC, is extensively used in the

building industry as a low-maintenance material, particularly in Ireland, the United Kingdom, in
the United States and Canada. In the USA and Canada it is known as vinyl, or vinyl siding. The
material comes in a range of colors and finishes, including a photo-effect wood finish, and is
used as a substitute for painted wood, mostly for window frames and sills when installing double
glazing in new buildings, or to replace older single-glazed windows. Other uses include fascia,
and sidingor weatherboarding. This material has almost entirely replaced the use of cast
iron for plumbing and drainage, being used for waste pipes, drainpipes, gutters and downspouts.
uPVC does not contain phthalates, since those are only added to flexible PVC, nor does it
containBPA. uPVC is known as having strong resistance against chemicals, sunlight, and
oxidation from water.

Signs:Poly (vinyl chloride) is formed in flat sheets in a variety of thicknesses and colors. As flat
sheets, PVC is often expanded to create voids in the interior of the material, providing additional
thickness without additional weight and minimal extra cost (see Closed-cell PVC foam board).
Sheets are cut using saw and rotary cutting equipment. Plasticized PVC is also used to produce
thin, colored, or clear, adhesive-backed films referred to simply as vinyl. These films are
typically cut on a computer-controlled plotter or printed in a wide-format printer. These sheets
and films are used to produce a wide variety of commercial signage products and markings on
vehicles, e.g. car body stripes.

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Polyvinyl Chloride (PVC)

Clothing and furniture:-

PVC has become widely used in clothing, to either create a leather-like material or at times
simply

for

the

effect

of

PVC. PVC

clothing is

common

in Goth, Punk, clothing

fetish and alternative fashions. PVC is less expensive than rubber, leather, and latex which it is
therefore used to simulate.
PVC fabric is water-resistant so is used in coats, skiing equipment, shoes, jackets, aprons, and
bags.

Healthcare:The two main application areas for single use medically approved PVC compounds are flexible
containers and tubing: containers used for blood and blood components, for urine collection or
for ostomy products and tubing used for blood taking and blood giving sets, catheters, heart-lung
bypass sets, hemodialysis sets etc. In Europe the consumption of PVC for medical devices is
approximately 85.000 tons every year. Almost one third of plastic based medical devices are
made from PVC. The reasons for using flexible PVC in these applications for over 50 years are
numerous and based on cost effectiveness linked to transparency, light weight, softness, tear
strength, kink resistance, suitability for sterilization and biocompatibility.

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Polyvinyl Chloride (PVC)

Plasticizers:DEHP (Di-2ethylhexylphthalate) has been medically approved for many years for use in such
medical devices; the PVC-DEHP combination proving to be very suitable for making blood bags
because DEHP stabilizes red blood cells, minimizing haemolysis (red blood cell rupture).
However, DEHP is coming under increasing pressure in Europe. The assessment of potential
risks related to phthalates, and in particular the use of DEHP in PVC medical devices, was
subject to scientific and policy review by the European Union authorities, and on 21 March
2010, a specific labeling requirement was introduced across the EU for all devices containing
phthalates that are classified as CMR (carcinogenic, mutagenic or toxic to reproduction).The
label aims to enable healthcare professionals to use this equipment safely, and, where needed,
take appropriate precautionary measures for patients at risk of over-exposure.
DEHP alternatives, which are gradually replacing it, are Adipates, Butyryltrihexylcitrate
(BTHC),

Cyclohexane-1,2-dicarboxylic

acid,

diisononylester

(DINCH),

Di(2-

ethylhexyl)terephthalate, polymerics and trimellitic acid, 2-ethylhexylester (TOTM).

Flooring:Flexible PVC flooring is inexpensive and used in a variety of buildings covering the home,
hospitals, offices, schools, etc. Complex and 3D designs are possible due to the prints that can be
created which are then protected by a clear wear layer. A middle vinyl foam layer also gives a
comfortable and safe feel. The smooth, tough surface of the upper wear layer prevents the
buildup of dirt, which prevents microbes from breeding in areas that need to be kept sterile, such
as hospitals and clinics.

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Polyvinyl Chloride (PVC)

Other applications:-

PVC has been used for a host of consumer products of relatively smaller volume compared to the
industrial and commercial applications described above. Another of its earliest mass-market
consumer applications was to make vinyl records. More recent examples include wallcovering,
greenhouses, home playgrounds, foam and other toys, custom truck toppers (tarpaulins), ceiling
tiles and other kinds of interior cladding.
Due to PVC piping being cheaper than metals used in musical instrument making, it is a
common alternative when making instruments, often for leisure or for rarer instruments such as
the contrabass flute.

Restrictions:In November, 2005 one of the largest hospital networks in the U.S., Catholic Healthcare West,
signed a contract with B. Braun Melsungen for vinyl-free intravenous bags and tubing.
In January, 2012 a major U.S. West Coast healthcare provider, Kaiser Permanente, announced
that it will no longer buy intravenous (IV) medical equipment made with polyvinyl chloride
(PVC) and DEHP (di-2-ethyl hexyl phthalate) type plasticizers.

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Polyvinyl Chloride (PVC)

Sustainability:PVC is made from petroleum. The production process also uses sodium chloride. Recycled PVC
is broken down into small chips, impurities removed, and the product refined to make pure white
PVC. It can be recycled roughly seven times and has a lifespan of around 140 years.
In the UK, approximately 400 tonnes of PVC are recycled every month. Property owners can
recycle it through nationwide collection depots. The Olympic Delivery Authority(ODA), for
example, after initially rejecting PVC as material for different temporary venues of the London
Olympics 2012, has reviewed its decision and developed a policy for its use. This policy
highlighted that the functional properties of PVC make it the most appropriate material in certain
circumstances while taking into consideration the environmental and social impacts across the
whole life cycle, e.g. the rate for recycling or reuse and the percentage of recycled content.
Temporary parts, like roofing covers of the Olympic Stadium, the Water Polo Arena, and
the Royal Artillery Barracks, would be deconstructed and a part recycled in the Vinyloop
process.

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Polyvinyl Chloride (PVC)

PVC Price Fluctuation:-

Prev. Close

5,100

Day's Range

5,000 - 5,200

Revenue

13,520.97B

Open
52 wk Range

5,100
3700 - 7800

EPS
Volume

295.26
731,209

Market Cap

2,120.00B

Dividend (Yield)

0 (0%)

Average Volume (3m)

P/E Ratio

3,469,026
17.95

Beta

1.77

1-Year Return

-13.56%

Shares Outstanding
Next Earnings Date

400,000,000
N/A

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Polyvinyl Chloride (PVC)

Bibliography:www.Wikipedia.com
www.investing.com
www.moneycontrol.com
www.indexmundi.com

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