TPi September 2014

business & market news

US demand for water and wastewater pipe to exceed $18bn in 2018

High density polyethylene (HDPE) pipe will continue to gain ground on copper and other competing pipe materials. This is particularly true for cross-linked polyethylene (PEX) pipe, which will continue to displace copper pipe in water distribution applications. Polyvinyl chloride (PVC) will remain the leading resin used in plastic pipe production due to its dominant position in large diameter applications. Despite the erosion of their market share to plastics, concrete and ductile iron pipe demand will retain significant market share due to widespread use in sewer, drainage and water transmission applications.

successfully increase end user water and sewer fees over the forecast period, enabling them to more easily fund repair and replacement projects.” In the building construction market, demand for water distribution and service pipe was severely constrained as new housing construction declined from 2006 to 2009, and non-residential building activity contracted at double- digit rates in 2009 and 2010. A strong recovery will occur in the housing market, with the number of housing starts expected to post double-digit gains to 2018, spurring demand for water pipe, particularly distribution and service pipe. Among pipe materials, metal will lose market share to plastic, continuing a long-term systemic trend. Demand for each type of metal pipe – ductile iron, copper and steel – is forecast to be less in 2018 than it was in 2008, reflecting increased use of plastic pipe in both small and large diameter applications.

Water and wastewater pipe demand in the USA will grow 7.7 per cent per year, to $18.1 billion in 2018, according to ‘Water & Wastewater Pipe’, a new study from The Freedonia Group, a USA- based industry market research firm. Gains will rebound from declines experienced during the 2008-2013 period, during which pipe markets were negatively impacted by decreases in construction spending. Strong increases in construction activity will fuel gains in the building construction market. The continued need to upgrade and repair ageing sewer and water pipe networks will spur gains in the municipal market, where the majority of pipe demand is attributable to the repair and replacement of a large existing infrastructure. According to analyst Mike Deneen, “There is a pressing need for repairs and replacement; however, they are often deferred until a burst pipe requires immediate action. It is anticipated that water utilities will

‘Water & Wastewater Pipe’ is available for purchase from The Freedonia Group.

The Freedonia Group, Inc – USA info@freedoniagroup.com www.freedoniagroup.com

Line pipe shipped to Saudi Aramco TMK has shipped over 2,000 tonnes of X60-grade line pipes produced by Volzhsky Pipe Plant to international oil company Saudi Aramco. Aramco Overseas Company and TVD experts representing Saudi Aramco’s interests had previously audited the pipe production processes at the pipe plant. in Moscow. At the concurrent WPC Exhibition the world’s largest oil and gas companies, as well as oil and energy ministries from various countries, showcased their latest products and technology.

Dmitry Pumpyanskiy, chairman of TMK’s board of directors, delivered an opening address stressing the importance of the event for the global oil and gas industry, and highlighting the role TMK plays in this industry. The petroleum congress was attended by over 5,000 delegates from more than 60 countries. TMK is a global manufacturer and supplier of steel pipes for the oil and gas industry, operating 28 production sites in the USA, Russia, Canada, Romania, Oman, UAE and Kazakhstan, and two R&D centres in Russia and the USA. In 2013 the company’s pipe shipments totalled 4.3mn tonnes. The largest share of TMK’s sales belongs to high margin oil country tubular goods, shipped to customers in over 80 countries.

As a sponsor of the congress, TMK took an active part in the forum. The company’s executives and experts participated in the WPC discussions, round tables and presentations, while its exhibition stand showcased samples of the company’s technology, such as proprietary TMK UP premium connections, stainless pipe, large diameter pipe and vacuum insulated tubing. The company also contributed with a wide range of product catalogues and video presentations. Among the visitors to the exhibition stand were Alexander Novak, Russia’s energy minister, and Renato Bertani, the WPC president.

“Saudi Aramco is the major tubular products consumer in the Middle East, and its requirements for the quality of pipe go far beyond the industry average levels,” said Alexander Shiryaev, TMK’s CEO. “Selection of our products by the leading oil producer following the audit affirms that the quality of TMK’s pipe produced using the state-of-the-art technologies is in line with the highest world standards and shows that the company has a deep insight into the needs of its customers and markets.”

TMK – Russia tmk@tmk-group.com www.tmk-group.com

In June, TMK participated in the 21 st World Petroleum Congress (WPC), held

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