July 2009 Tube Products International
11
news
business & market
Despite a weak current construction
environment, pipe demand is expected
to turn around and grow 2% annually to
11.1 billion ft in 2013. Stimulants include
renewed activity in the construction
sector, the growing obsolescence of
sewer and drainage systems, and
the need to upgrade municipal water
systems.
Plastic pipe will advance at the
fastest pace. Construction and energy
markets will provide the best market
opportunities, together accounting
for nearly two-thirds of total pipe use
in 2013. These and other trends are
presented in Plastic & Competitive
Pipe, a new study from The Freedonia
Group, Inc, a Cleveland-based industry
research firm.
Demand for plastic pipe will advance
2.3% yearly to 5 billion ft in 2013,
creating demand for 9.2 billion pounds
of resin. Polyvinyl chloride (PVC) pipe
will remain dominant and be driven by
improved joining technologies and resins
such as molecularly oriented PVC.
High density polyethylene pipe will
exhibit the fastest plastic pipe growth
based on opportunities in potable
water and corrugated drain and sewer
applications.
Demand for reinforced thermosets and
acrylonitrile-butadiene-styrene resins
will expand at a below average pace due
to mature markets and more specialised
applications.
Copper pipe demand is forecast to grow
1.9% annually through 2013, paced by
opportunities in service and distribution
pipe. Demand for steel pipe will grow at a
slowpace through2013, withabove aver-
age growth anticipated in gas and oil
pipe.
Aluminium pipe demand advances
will result from opportunities in motor
vehicle and refrigeration equipment
uses. Demand for concrete pipe will
rebound and expand 2% per year
through 2013 to 180 million ft, driven
by drain and storm sewer applications.
More favourable raw material pricing will
also contribute to pipe growth.
Structural, mechanical and miscel-
laneous uses, led by refrigeration tubing,
will remain the leading pipe market
through 2013, followed by potable
water and conduit. Refrigeration tubing
advances will be driven by rebounding
refrigeration equipment shipments, with
further gains threatened by continued
declines in commercial refrigeration
manufacturing.
Potable water pipe demand will expand
as the building construction market
recovers. Conduit demand will also
experience renewed growth after ten
years of declines. Fastest growth is
anticipated for drain pipe in light of
renewed construction activity and needs
to renovate obsolete and overloaded
pipe networks.
Plastic & Competitive Pipe (published
04/2009, 314 pages) is available
for $4,800 from The Freedonia
Group, Inc.
The Freedonia Group, Inc
– USA
pr@freedoniagroup.com www.freedoniagroup.comPipe demand forecast