PLASTIC PIPES
European pressure pipe sales flat / AMI sees “clear need” for innovation, new products
The mature European market for thermoplastic pressure pipes totalled 570,000 t/y in 2002 and thus recorded only marginal growth since 1999, when 550,000 t/y were processed, says a new, detailed market study by the British market research group Applied Market Information (AMI, GB-Bristol; www.amiplastics.com). AMI says the industry faces overcapacity and low profitability that can only be addressed by “substantial” restructuring and/or innovative new products.
In the medium term, the use of thermoplastic pipes will remain nearly static due to low investment. Nevertheless, the researchers see opportunities in the longer term, especially because of the need to replace aging water networks and the growth of natural gas at the expense of coal and oil, along with the drive to substitute iron or PVC. But AMI remarks that there are still too many players and too much capacity in the market, especially in PE systems in Germany and Italy.
Although plant closures have eased the situation somewhat, the report asserts that “there is clearly not much money to be made in selling standard pressure pipes.” In AMI´s view, producers need to find new products which can fit specific needs and be sold at premium prices. The study points to developments at companies such as Uponor, Egeplast, GPS and Wavin, which, as it notes, have developed pipes with higher levels of toughness and chemical resistance that are in demand for such applications as brownfield land development and trenchless installations.
According to AMI´s figures, PVC still accounted for 27% of the market for water pressure pipes in the period 1999- 2002. However, it says PVC has been losing ground to PE, due less to environmental factors than the versatility of PE. The researchers see recent growth rates for PE at about 2-3% a year, with water potable systems accounting for “almost half” the market in 2002. PE 100 has seen “double digit” growth (in part due to replacement of PE80) and now accounts for 45% of total PE demand for water pressure pipes. AMI predicts this will rise to 53% by 2005.
The market for PE gas pipes was around 140,000 t in 2002, but this is seen as diminishing. AMI says the boom in the UK and France is likely to be followed by a “large decline” in 2003, with the continued weak German market and the completion of Central European networks likely to depress demand up to 2005. In the gas market, too, PE 100 is gaining ground at the expense of PE 80, it adds.
For further information on the AMI report, contact Ewan Green: ecg@amiplastics.com
In the medium term, the use of thermoplastic pipes will remain nearly static due to low investment. Nevertheless, the researchers see opportunities in the longer term, especially because of the need to replace aging water networks and the growth of natural gas at the expense of coal and oil, along with the drive to substitute iron or PVC. But AMI remarks that there are still too many players and too much capacity in the market, especially in PE systems in Germany and Italy.
Although plant closures have eased the situation somewhat, the report asserts that “there is clearly not much money to be made in selling standard pressure pipes.” In AMI´s view, producers need to find new products which can fit specific needs and be sold at premium prices. The study points to developments at companies such as Uponor, Egeplast, GPS and Wavin, which, as it notes, have developed pipes with higher levels of toughness and chemical resistance that are in demand for such applications as brownfield land development and trenchless installations.
According to AMI´s figures, PVC still accounted for 27% of the market for water pressure pipes in the period 1999- 2002. However, it says PVC has been losing ground to PE, due less to environmental factors than the versatility of PE. The researchers see recent growth rates for PE at about 2-3% a year, with water potable systems accounting for “almost half” the market in 2002. PE 100 has seen “double digit” growth (in part due to replacement of PE80) and now accounts for 45% of total PE demand for water pressure pipes. AMI predicts this will rise to 53% by 2005.
The market for PE gas pipes was around 140,000 t in 2002, but this is seen as diminishing. AMI says the boom in the UK and France is likely to be followed by a “large decline” in 2003, with the continued weak German market and the completion of Central European networks likely to depress demand up to 2005. In the gas market, too, PE 100 is gaining ground at the expense of PE 80, it adds.
For further information on the AMI report, contact Ewan Green: ecg@amiplastics.com
14.08.2003 Plasteurope.com [14310]
Published on 14.08.2003