China’s Pipe Mkt. to Hit 87.8 Bil. Yuan in 2012

Demand for large diameter pipe used in sanitary sewer, drainage, storm sewer and natural gas transportation applications is expected to show faster growth than the industry average. The most rapid gains are slated for the sanitary sewer segment, boosted by strong residential construction and initiatives to improve living conditions in the countryside, according to Freedonia. Drainage pipe will retain the largest share of the market, with nearly one-third of total demand in meters in 2012. Growth will be spurred by increased spending on both building and nonbuilding construction and the need to deliver runoff to existing bodies of water. Freedonia predicts advances will be further stimulated by rapid increases in infrastructure construction because of China’s ongoing urbanization. The continuing expansion of infrastructure 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 percent of total large diameter pipe length in 2007, will continue to be the leading material going forward, profiting from sound growth in all four of its major applications — storm sewers, drainage, sanitary sewers and water distribution — as the government continues its efforts to improve the country’s physical infrastructure. Sales of plastic large diameter pipe are projected to increase at a rate of 11.2 percent annually through 2012, faster than growth for any other material, according to Freedonia.