TPT January 2009

I ndustry N ews

China’s LDP demand to exceed 87 million metres in 2012

Drainage pipe will retain the largest share of the market, with nearly one third of total demand in metres in 2012. Growth will be spurred by increased spending on both building and non-building construction and the need to deliver runoff to existing bodies of water. Advances will be further stimulated by rapid increases in infrastructural construction because of China’s ongoing urbanization. The continuing expansion of infrastructural construction in rural areas will also drive gains as the government addresses a severe imbalance in living conditions between the urban and rural populations. Concrete, which accounted for 44 per cent of total large diameter pipe length in 2007, will continue to be the leading material. Sales of plastic large diameter pipe are projected to increase at a rate of 11.2 per cent annually through 2012, faster than growth for any other material. The Freedonia Group Inc – USA Fax : +1 440 646 0484 Email : pr@freedoniagroup.com Website : www.freedoniagroup.com

A recent study claims that demand for large diameter pipe in China is expected to increase by 9 per cent annually to 87.7 million metres in 2012, valued at 87.8 billion Yuan. The study, ‘Large diameter pipe in China’ by the Freedonia Group Inc, shows that gains will be fueled by increases in spending on physical infrastructure construction. The increase in construction will support demand for large diameter pipe in drainage,

gas and petroleum distribution, and other uses. Construction of new residential and nonresidential buildings will provide opportunities for large diameter pipe in sewers, water distribution and district heating systems. Growth in manufacturing shipments, petroleum and gas extraction, and refining is expected to generate demand in the process manufacturing and petroleum and natural gas industries.

Demand for large diameter pipe used in sanitary sewer, drainage, storm sewer, and natural gas transportation applications will see faster growth than the industry average. The most rapid gains will be in the sanitary sewer segment, boosted by strong residential construction and initiatives to improve living conditions in the countryside.

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J anuary 2009

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