Review of Chinas

Plastic Piping Industry

April 2014

2014 PIM Ltd. All rights reserved. No part of it may be circulated, quoted, or reproduced without prior written approval from PIM Ltd.

Summary

Market Overview
Chinas output of plastic pipe reached 12.1 million metric tons in 2013; however the nationwide
production capacity was more than twice the output for the same year.
The market is projected to keep growing over the next five years at a rate of less than 10%
Product Category
PVC took more than half of the plastic pipe market; however, serious over capacity has been observed
in the seemingly homogenous ordinary hard plastic PVC pipes in recent years
The market shares of PE and PP are projected to grow in the near future
Application
Municipal drainage and sewage disposal, agricultural irrigation and drainage are the main application
fields for plastic pipes in China
High potential applications can be identified in wastewater treatment, gas, heating, communications and
mining sectors for the plastic pipes with better performance in wear-resistance, heat-resistance,
anticorrosion properties
Pricing Comparison
Plastic pipes show obvious cost advantages compared with metal pipes, especially in large diameters
Major Players
Most of the manufacturers are small and medium sizes, with limited production capacity and lessadvanced technology
To meet the needs of improving quality and the disparate competing players, industrial consolidation is
expected

2014 PIM Ltd. All rights reserved. No part of it may be circulated, quoted, or reproduced without prior written approval from PIM Ltd.

Output

As the worlds largest producer and consumer of plastic pipe,

Chinese plastic pipe manufacturing industry is facing serious
overcapacity
Output Growth of China Plastic Pipe
(Million Tons)
20
16
12
8
4
0

17.78

3.5

4.59

5.8

2007

2008

2009

10

8.4

2010

2011

11

2012

12.1

2013

0.5
0.4
0.3
0.2
0.1
0

Plastic Pipe Output

Year-Year Growth

2018E

After becoming the worlds biggest producer and consumer of plastic pipe in 2010, Chinas output of
plastic pipe kept increasing to reach 12.1 million metric tons in 2013, up 10 percent from 2012
The market is projected to keep growing over the next five years at a slower growth rate of less than
10%, with the combined factors of slowing down of the housing demand of urbanization, expansion of
rural drinking water systems and infrastructure spending
The nationwide production 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
Source:

1. China Plastics Processing Industry Association (CPPIA)

2. China Plastics Piping Association (CPPA)
3. PIM research and analysis

2014 PIM Ltd. All rights reserved. No part of it may be circulated, quoted, or reproduced without prior written approval from PIM Ltd.

Product Category

A declining trend is predicted for the market share of low-end PVC

pipe products in the near future
Plastic Pipe Market Share, 2012

10%

PVC

5%

PE
30%

55%

PP

Others

PVC plays a dominant role in the market, while, in the future, PE and PPs market shares are expected
to increase because of the advantages of environmentally friendly production processes and high
market application potentials
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 specialty base resins, manufacturing processes and
finished pipe product qualities
Source:

1. China Plastics Processing Industry Association (CPPIA)

2. China Plastics Piping Association (CPPA)
3. PIM research and analysis

2014 PIM Ltd. All rights reserved. No part of it may be circulated, quoted, or reproduced without prior written approval from PIM Ltd.

Application

Municipal and agriculture applications took almost half of the plastic

pipe consumption; high market potential is identified in the sectors
requiring for better performance
Application of Plastic Pipes in China
4%
8%

4%

2%

17%

10%

17%

10%
13%
13%

Agriculture
Municipal water supply
Municipal drainage
Building drainage
Building water supply
Sheathing
Export
Industry
Ground heating system
Others

The plastic pipes have widely applied in municipal drainage and sewage disposal, agricultural irrigation
and drainage, building water supplies and drainage, building heating systems, city gas delivery, city tap
water, 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
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
Source:

1. China Plastics Processing Industry Association (CPPIA)

2. China Plastics Piping Association (CPPA)
3. PIM research and analysis

2014 PIM Ltd. All rights reserved. No part of it may be circulated, quoted, or reproduced without prior written approval from PIM Ltd.

Pricing Comparison

The obvious cost advantage of plastic pipes compared with metal

pipes, representing high demands in amenable working conditions
Comparison of Piping Materials Pricing
USD/Meter
2500.0

CPVC
UPVC
2000.0

PPR
PP-domestic
PP-imported (AGRU)

1500.0

FRPP
FRP-PVC
1000.0

PVC
PE

FRP

500.0

0.0
0
Source:

100

200

300

400

500

600

-PPHdomestic(Yanshan)
-PPHimported(Borealis)

DiameterDN

PIM research and analysis

2014 PIM Ltd. All rights reserved. No part of it may be circulated, quoted, or reproduced without prior written approval from PIM Ltd.

Major Players

Consolidation is expected to improve the disordered competitive

market conditions
Top Plastic Pipe Manufacturers
Company Name

Major Products

Website

Fujian ATON New Material Technology Co., Ltd

PVC, PE, PP

http://www.atontech.com.cn/

Hebei Bosoar Pipe Co., Ltd

PVC, PE, PP

http://www.bspipe.com.cn/english/index.asp

Yonggao Co., Ltd

PVC, PE

http://en.era.com.cn/

Nanya Plastics (Xiamen) Co., Ltd

PVC, PE, PP

http://www.nyxm.com.cn/

Hubei Kaile Science and Technology Co., Ltd

PVC, PE, PP

http://www.cnkaile.com/en

GOODY TECHNOLOGY CO.,LTD

PVC

http://www.goody.com.cn/list.php?tid=35

CHINA LESSO Group Holdings Limited

PVC, PE, PP

http://www.lesso.com/En/

Chengdu CHUANLU GROUP

PVC

http://www.chuanlugroup.com/

Chinaust Group

PE, PA

http://www.chinaust.com/en/index.asp

Anhui Guotong Pipe Co., Ltd

PVC, PE

http://www.guotone.com/

Zhejiang Weixing New Building Materials Co., Ltd

PE, PP

http://www.china-pipes.com/english/index.asp

In total, about 6,000 to 10, 000 manufacturers are engaged in the producing 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
Currently it is the transition period for consolidation, as smaller and medium-size enterprises experience
more problems of getting access to capital, rising labor costs, and having the best technology
Source:

1. China Plastics Processing Industry Association (CPPIA)

2. China Plastics Piping Association (CPPA)
3. PIM research and analysis

2014 PIM Ltd. All rights reserved. No part of it may be circulated, quoted, or reproduced without prior written approval from PIM Ltd.

Introduction of PIM

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and detailed pathways to market decision makers as well as identifying
and qualifying potential Chinese partners
About us:
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services for clients initially entering or expanding into Chinas industrial sectors
Our services cover:

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2014 PIM Ltd. All rights reserved. No part of it may be circulated, quoted, or reproduced without prior written approval from PIM Ltd.

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