Analysis on the development prospects and trends of plastic pipe industry

1. Industry Overview

The plastic pipe industry is an important branch of the plastic products industry. It is a pipe made of polymer materials such as PVC, PE and PPR, and processed and produced through processes such as plastic extrusion molding, injection molding and composite molding. Plastic pipes are widely used in the engineering field, with many varieties, and the required varieties and specifications of plastic pipes can be selected according to the characteristics of the project. At present, polyvinyl chloride pipes (PVC) and polyethylene pipes (PE) are still the leading products of plastic pipes at home and abroad.

The invention and application of plastic pipes is a revolution in the global pipeline industry. It is used to replace traditional pipes such as cast iron pipes, galvanized steel pipes, and cement pipes. It solves the problems of secondary pollution and chemical corrosion of drinking water and effectively protects groundwater resources from pollution. Compared with traditional cast iron pipes, galvanized steel pipes, cement pipes and other pipes, plastic pipes have the advantages of energy saving and material saving, environmental protection, light weight and high strength, corrosion resistance, smooth inner wall without scaling, simple construction and maintenance, and long service life. They can be widely used in building water supply and drainage, urban and rural water supply and drainage, urban gas, electricity and optical cable sheathing, industrial fluid transportation, agricultural irrigation and other construction, municipal, industrial and agricultural fields.

The domestic and foreign economic situation is complex and changeable, and the market demand continues to be weak. The entire plastic industry is sluggish. However, with the stable domestic demand of domestic housing construction and municipal engineering, the strong support of water conservancy construction policies, the construction of rural drinking water safety systems and the promotion of building materials to the countryside drive the demand for plastic pipes, and the incremental demand for gas supply systems and heating consumption trends, the plastic pipe industry still shows a good development momentum.

In recent years, the use of materials such as cross-linked polyethylene (PE-X), ultra-high molecular weight polyethylene (UHMWPE), heat-resistant polyethylene (PE-RT), and modified polyvinyl chloride (PVC-M) has increased rapidly; solid wall pipes, corrugated pipes, ribbed pipes, wound pipes, core foamed pipes, spiral pipes and other structures made of different raw materials have been continuously developed, produced and applied; there are more than 1,500 utility models and invention patents in the field of domestic plastic pipes; in terms of ultra-high molecular weight polyethylene (UHMWPE) pipes, large-diameter steel-plastic composite wound pipes for drainage, and plastic and metal composite pipes, we have reached a certain international advanced level.

However, in the process of rapid development, the industry also faces many problems, such as overcapacity, product homogeneity, excessive proportion of general and low-end products, imperfect product standard system, and domestic special resins, additives and other raw materials cannot meet production needs. Some functional pipe products such as fusible (FPVC), oriented (PVC-O) polyvinyl chloride pipes, high-pressure reinforced thermoplastic pipes (RPT), winding fusion reinforced PE pressure pipes, self-reinforced PE pipes and other production technologies are significantly behind those of foreign countries.

(1) Current status of domestic sales of plastic pipes

my country's plastic pipe industry is developing rapidly, with the average annual growth rate of plastic pipes and fittings reaching 26.29%. According to the data of the Ministry of Construction, the domestic plastic pipe industry will maintain rapid growth in the next ten years, and the market share of plastic pipes in various types of pipes in the country will rise to more than 60%, with a market demand of more than 800 billion yuan.

Overall, there is still a large gap between my country and foreign countries in terms of total consumption and per capita consumption of plastic pipes, especially in the application of PVC-U pipes and PE pipes. At present, the country with the highest per capita plastic consumption in the world is Belgium, which is as high as 200 kg; followed by the United States, which is 170 kg; and other developed countries are all above 120 kg. my country's economy is developing rapidly, and there is huge room for growth in pipe demand and per capita consumption.

(2) Current status of plastic pipe export development

Although my country has transformed from a major importer to an exporter, most of my country's plastic pipe exports are low-end products with low added value. The product process and technical content are far behind similar imported products. Exports are also limited to a few underdeveloped regions, and there is no innovation or breakthrough in high-end products. The reason for this situation is that, on the one hand, the overall equipment level is low and the process technology is relatively backward. Although the pace of technological transformation has been accelerated and a large number of advanced equipment have been introduced from abroad, the variety and quality of domestic plastic processing machinery have made significant progress, but for the entire industry, there are still problems of low equipment level and relatively backward process technology.

2. Industry development trend

(1) With the increasingly fierce market competition, the plastic pipe industry needs to achieve long-term development and must require industry enterprises to embark on a path of substantial improvement with technological innovation and quality as the priority as soon as possible. At the same time, the industry should strengthen the production technology of supporting pipe fittings and special resins, work hard on additives and raw materials, make efforts in detection and control technology, and strive to develop high-end products. Through independent technological innovation, process innovation, equipment improvement and independent design, a batch of new products, new technologies and new equipment with independent intellectual property rights will be launched, which can be comparable to the advanced technologies of South Korea and Europe. Only in this way can my country's rapid development be fundamentally guaranteed and my country's plastic pipe industry can enter the fast lane of healthy development.

(2) Actively adjust the market and regain the right to choose brands

From the trend of the world plastics market, the high price of raw materials will continue for a period of time. However, based on its consumption characteristics, the price increase space of plastic pipes is relatively small. Relying on the decline of raw material prices is a drop in the bucket to solve the operating pressure, and it is impossible to fundamentally get rid of the passive operating situation. The marketing strategy must be adjusted. Various signs indicate that domestic plastic pipe manufacturers have entered an era of low profits. In order to win sustainable and stable development space, enterprises should establish their brand image as soon as possible. Shifting from product price competitiveness to brand competitiveness, strengthening the ability to respond to emergencies, and building their own competitive fortress is a long-term business strategy.

(3) Accelerate the elimination of obsolete production capacity and enhance marketing innovation capabilities

In contrast to the increase in total demand, the plastic pipe industry will face a large number of small and medium-sized enterprises going bankrupt. At present, the industry's excess capacity is estimated to reach 50%. In the period of lack of national supervision and weak consumer brand awareness, a large number of workshops survive by producing counterfeit and shoddy products. In recent years, with the changes in the market situation, some traditional low-quality plastic pipe concentrated production areas in Zhejiang, Shandong and other places have experienced a wave of bankruptcies.

In the past, domestic plastic pipe companies mostly adopted the marketing and promotion strategy of industrial products. In fact, from the essential characteristics of plastic cloth pipe products, some plastic pipes, especially civilian products, may as well adopt the marketing and promotion strategy of consumer products and establish famous brands. In terms of the current product sales channels of domestic plastic pipe companies, they should accelerate network construction and strengthen the promotion of market terminals, such as cooperating with large building materials supermarkets.

(4) Strengthen international trade and expand the world market

Compared with the domestic PVC pipe market, domestic plastic pipe products have price advantages in the international market, are increasingly valued, and have relatively high profits. Plastic pipes made of PVC as raw material account for more than 50% of the total output. The second largest is PE, especially HDPE, which accounts for 30% of the remaining 50%.

In general, the plastic pipe industry is greatly affected by the fluctuation of raw material prices and the market competition is fierce. In the future, with the implementation of China's urbanization development strategy, energy conservation and emission reduction policies, and the promotion of large-scale construction projects, the plastic pipe industry will have good development prospects.

3. Industry development prospects

(1) Domestic demand continues to rise

In recent years, with the continuous deepening of my country's reform and opening up and the country's increased investment in infrastructure construction, the domestic demand for plastic pipes has maintained an average annual growth rate of more than 15%, especially in the construction of urban water supply and drainage pipe networks, plastic pipes play an increasingly important role. Compared with traditional cast iron pipes, plastic pipes have light bulk density and long service life. The service life is generally more than 50 years, which basically reaches the same service life as buildings. The long-term national construction projects such as the Belt and Road Initiative, new rural construction and urbanization process have brought huge market demand for various plastic pipe industries. Taking this as an opportunity, the plastic pipe production industry has broad prospects.

(2) The application field of plastic pipes has been further expanded.

In addition to the continued growth of municipal and building water supply and drainage pipes, agricultural (water supply, irrigation and drainage) pipes, the application proportion of rural human and livestock drinking water transformation, solar water pipelines, municipal sewage, ground source heat pump pipelines, communications, electricity, gas, heating, medical and other industries has increased significantly. Now plastic pipes have been widely used in building water supply and drainage, building heating, urban gas transmission, urban tap water, municipal drainage, sewage, rural human and livestock drinking water transformation, agricultural irrigation, drainage, electricity, communications, industry and many other fields. The expansion of the application field of plastic pipes will further enhance its market competitiveness and expand the demand and output of plastic pipes.

(3) Product development capabilities continue to improve

In recent years, the pace of technological progress in the industry has accelerated significantly, especially the increase in international exchanges has driven the improvement of scientific and technological levels. Many companies attach importance to foreign advanced technologies. While introducing advanced processing equipment, they also pay more attention to the research and development of new products and the introduction of new technologies. At present, the gap between the technical level of domestic plastic pipes and that of developed countries is gradually narrowing. There are more and more new varieties, new structures, new materials, new technologies, new processes and patent projects of plastic pipes. In addition to the great progress of PE, PE-X, PB, composite pipes, corrugated pipes and other varieties, high-temperature resistant polyethylene pipes (PE-RT), plastic composite pipes (such as HLDPE, silent drainage pipes, etc.), plastic metal composite pipes and various materials and composite materials. New pipes such as corrugated pipes, annular rib pipes, winding pipes, etc. are also developing rapidly.

With the continuous enhancement of the awareness of independent innovation of domestic pipe companies, the development of new PVC pipes is very active, and technological progress has brought innovative value to PVC pipes. At present, the outstanding technological innovation achievements in China are modified PVC (PVC-M) pipes and oriented PVC (PVC-O) pipes for pressure pipes. Through physical and chemical modification, these two varieties have greatly improved the impact resistance of the pipes while maintaining the original strength advantages of the pipes. They combine the toughness of PE pipes and the strength of PVC-U, which can not only improve performance but also save materials, thereby expanding the application field. In the research and development and innovation of other plastic pipe products, they have also achieved remarkable results. For example, PE-RT pipes have now evolved into multiple varieties such as plastic aluminum, oxygen barrier, and capillary, while PP-R pipes also have nearly 10 varieties such as steady state, glass fiber, and plastic aluminum. The continuous emergence of these new products has not only improved the performance of this type of pipe, but also expanded the application range of the products.

(4) New fields have broadened the market prospects of the pipeline industry

Compared with advanced countries, the application of plastic pipes in my country still has many blank areas, which is the new market capacity space, such as the research and development of plastic cloth hose products. At present, the production of domestic plastic pipe enterprises is mainly concentrated on plastic hard pipes, while there are relatively few enterprises involved in the production of plastic hoses. Therefore, the market is relatively broad, especially for hoses with high technical content, which have few competitors and high product profit margins.

As the country pays more and more attention to environmental protection, the country will invest heavily in the construction of sewage treatment plants and drainage networks in many cities in the next few years. The amount of recycled water for sewage recycling should reach 30% of the total amount of sewage, and special pipelines need to be laid. All of these have brought broad prospects for the development of my country's plastic pipe industry. But at the same time, we should also see that there are still some unfavorable factors that restrict the development of my country's plastic pipe industry, such as the vicious market competition leading to low product prices, high dependence on imported raw materials, slow promotion and application of new products and new technologies, etc., especially the current global economic crisis has a great impact on the development of the plastic pipe industry. In order to accelerate the development of my country's plastic pipe industry, it is necessary to give full play to the functions of industry associations and actively provide services and support to enterprises. Accelerate the development of raw materials in my country and standardize industry self-discipline; establish a strict quality constraint mechanism to allow enterprises with excellent quality and high technological content of products to become the mainstream of the market, and let construction companies master more advanced technologies to improve the overall use effect of products.