World Plastic Pipe

World demand to increase 6.2% annually through 2017
Global demand for plastic pipe is forecastto rise 6.2 percent annually through 2017to 23 million metric tons, improving significantlyfrom growth recorded between2007 and 2012. Construction related pipeapplications will offer the most impetusfor growth across the board. In particular,a recovering US construction industrywill drive demand gains. Plastic pipe willcontinue to supplant competing materials(e.g., steel, copper, ductile iron) in manyconstruction applications due to its lowcost, installation ease, and performanceadvantages.

PVC continues as most widely used resin
Across all years polyvinyl chloride(PVC) is the leader, accounting for 55percent of all plastic pipe demand. Nearlyall end users utilize PVC to some degree.Going forward, however, high densitypolyethylene (HDPE) is expected to takemarket share away from PVC in potablewater distribution applications as crosslinkedpolyethylene (PEX) becomes morecommon in many regional markets. In addition,demand for fiberglass, which hashistorically been limited based on its highprice, is beginning to be used in a widerarray of water and wastewater settings.

Demand gains in terms of weight willbenefit from plastics’ increased acceptancein larger diameters. The majorityof large diameter plastic pipe is foundin infrastructure applications, such aspotable water transmission and sewer anddrainage networks. In many developedcountries, decaying infrastructures willdrive sales gains. As replacement activitypicks up, many countries will utilizeplastic pipe primarily because of its lowercosts and ease of installation. Amongdeveloping nations, investment inestablishing local water and wastewaterinfrastructures will stimulate demand.

Growth in manufacturing, oil/gas industry to benefit plastic pipe demand
While plastic is not as widely utilized inthe oil and gas market, improvements inresin formulations have enabled plastic(particularly HDPE and fiberglass) toincrease its market share in recent years.In process manufacturing applications,HDPE’s greater flexibility has resulted inits increased usage. Fiberglass is utilizedin the process manufacturing marketwhen particularly hazardous materialsare present. Going forward, demand isexpected to benefit from gains in manufacturingoutput and growth in crude oiland natural gas production and consumption,including increases in exploratory,well drilling and pipeline constructionactivity.

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