China Plastic Pipe Industry
After becoming the world’s largest producer and consumer of plastic pipe in 2010, China’s output of plastic pipe kept increasing to reach 12.1 million metric tons in 2013, up 10 percent from 2012. PIM estimates that this market will keep growing over the next three to five years at a slower growth rate of less than 10%. This reflects the slowing down of the housing demand of urbanization, expansion of rural drinking water systems and infrastructure spending.
Figure 1: Output growth of China plastic pipe
Source: CPPA, PIM China Ltd.
The nationwide capacity is more than twice the output of 2013. There is a serious contradiction between excess capacity and lack of high-end product supply and demand in current low-end plastic pipe products. The over capacity is mainly found in the seemingly homogenous ordinary hard plastic PVC-U pipe, but, for the plastic pipes having a later market start, such as PVC-M, PVC-O and PVC-C, there are still big gaps compared with the foreign products, in the speciality base resins, manufacturing processes and finished pipe product qualities.
The plastic pipes have widely applied in building water supplies and drainage, building heating systems, city gas delivery, city tap water, municipal drainage and sewage disposal, agricultural irrigation and drainage, electric power, communications and industrial areas. Further research and development are required for plastic pipes with wear-resistance, heat-resistance, anticorrosion properties for delivering special mediums in mining, high and medium-pressure oil and gas transportation for offshore oil and gas fields. It is predicted that the penetration of plastic pipes in wastewater treatment, gas, heating, communications and mining sectors will witness a fast increase in the near future due to the increasing demands.
In total, about 6,000 to 10, 000 manufacturers are engaged in the production of plastic pipes in China, however, there are only a few with capacity up to 10,000 tons and the top 15 companies represent about 25% of the total production capacity. PIM’s research revealed that currently it is the transition period for expected consolidation, as smaller and medium-size enterprises experience more problems of getting access to capital, rising labor costs, and having the best technology.
The top plastic pipe manufacturers in China, 2013
- CHINA LESSO Group Holdings Limited
- Fujian ATON New Material Technology Co., Ltd
- Hebei Bosoar Pipe Co., Ltd
- Yonggao Co., Ltd
- Nanya Plastics (Xiamen) Co., Ltd
- Hubei Kaile Science and Technology Co., Ltd
- GOODY TECHNOLOGY CO.,LTD
- Chengdu CHUANLU GROUP
- Chinaust Group
- Anhui Guotong Pipe Co., Ltd
Figure 2: List of top plastic pipe manufacturers
Source: PIM China Ltd.
China Plastics Processing Industry Association (CPPIA)
China Plastics Piping Association (CPPA)
China Plastics Industry Yearbook 2013
National Bureau of Statistics of China
For more details, please visit China Plastic Pipe Industry Brief-PIM 201404