2011 excess plastic pipe production capacity is quite serious

In the past two years, the real estate market has been weighed down by national policies, and the demand for plastic pipe in this area has been reduced by a divisor; the demand for plastic pipe in the future will also be very limited. However, irrigation water conservancy construction and water-saving irrigation equipment are inseparable from plastic pipe and fittings. The demand for plastic pipes and fittings in the rural market has soared. Therefore, only when the target market is shifted from a big city to a rural area as soon as possible, can the plastic pipe and pipe industry achieve profitability and avoid disadvantages and achieve rapid development.

Plastic pipe has the characteristics of light weight, corrosion resistance, high compressive strength, good weather resistance, small water resistance, easy processing and installation, long service life, etc. It will become the first choice for water conservancy projects. It is expected that in the construction of rural safe drinking water projects, 30% of the funds will be used to purchase and install plastic pipe and fittings, which will bring about 1 billion yuan of business opportunities to plastic pipe production enterprises each year.

Although the plastic pipe market has an attractive prospect, due to overcapacity and fierce competition, not all companies can benefit from it. Only those companies that are constantly innovating can win the market and obtain substantial profits. At present, there are a total of 3,000 plastic pipe manufacturers in China with a total capacity of more than 170 million tons. In 2010, although the national output of plastic pipe reached a record high of 8 million tons, the export volume hit another record high, reaching 396,000 tons, a sharp increase of 24.53% year-on-year, but still more than half of the production capacity was idle, indicating that the industry’s excess capacity is very serious.

In addition, to cope with the frequent occurrence of abnormal weather, the country will also vigorously promote water-saving irrigation equipment, which has led to a surge in demand for plastic pipes and fittings in the rural market.

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