50-60% of China’s PVC flooring products exports go to the United States; 80% of US PVC flooring imports come from China. Exports of PVC flooring are highly correlated with U.S. existing home sales.
From January to November 2021, the growth rate of China’s exports of PVC flooring products to the United States was 2.4%, and the growth rate of US imports of PVC flooring from China was 4.8%, and the growth rates of the full sample data were 17% and 20% respectively. The drivers are Vietnam’s explosive growth (368%) and South Korea’s high growth (12%).
The core variable of the structural changes in the source countries of US PVC flooring imports is the 25% tariff imposed on China. The impact is: on the one hand, Vietnam sends the finished product directly to the United States, so its output to the United States is growing linearly.
On the other hand, the increase in South Korea does not come from overseas investment by domestic manufacturers, but only in the form of reassembly. It is more a measure to respond to policy changes. Therefore, in 2019 and 2021 (the impact of the policy in 2020, the epidemic will be postponed) The growth rate in the past two years has been more significant.
In 2021, the core marginal increase of domestic PVC floor covering products demand comes from Canada, Germany, the Netherlands, Belgium and Russia. The prosperity of the real estate industry in Europe and the United States is an endogenous drive, but this trend may usher in an inflection point.
Finally, some WPC and other floors are also used for wall panels, and WPC currently uses less and less wood powder, and more stone powder is used.
