There is a strong demand for plastic tubing
There is a strong demand for plastic tubing
Since last year, the continuous increasingly severe housing market regulation policies, is expected for a long time, the real estate market, especially a line of big cities in the real estate market policy will be silenced, thereby cutting the field demand for plastic pipe material; Combined with water supply and drainage facilities in first-tier cities, the demand for plastic pipes will be limited in the future. However, whether it is water conservancy construction or water-saving irrigation equipment, plastic pipes and fittings are inseparable, and the demand for plastic pipes and fittings is soaring in the rural market. Therefore, it is only possible to move the target market from big cities to rural or second-line and third-tier cities as soon as possible, so that the plastic tube industry can avoid harm and gain significant development.
Rural areas are attractive
"After eight consecutive years of focusing on 'three farmers', the first central document of the year has focused on water conservancy construction, which is a significant positive for the plastic pipe industry." Wang zhanjie, secretary general of the China plastic processing industry association, told reporters. Over the next decade, four trillion yuan will be invested in water conservancy projects. Counting on each year to extract money from land sales for 70 billion yuan, irrigation and water conservancy construction in the next 10 years will have a direct investment of 4.7 trillion yuan for water conservancy construction, leveraged funds could be as high as tens of one hundred million yuan.
The key of water conservancy construction is farmland water conservancy construction, water-saving project and rural drinking water project. Because of the plastic pipe has the advantage of light quality, corrosion resistance, high crushing strength, good weather resistance, small flow resistance, easy processing and installation, long service life, etc, will be the first choice of the water conservancy project of tubing. In the construction of rural safe drinking water project, 30% of the funds will be used to purchase and install plastic pipes and fittings, which will bring about 1 billion yuan of business opportunities to the plastic pipe enterprises every year. In addition, the country will also promote water-saving irrigation equipment in response to frequent abnormal weather, which has led to a surge in demand for plastic pipes and fittings in the rural market.
Demand is strong in second - and third-tier cities
"Second - line, third-tier city real estate and urban pipe network construction to the plastic pipe business opportunities are not small." Guo runmin, general manager of xi 'an gaoke building materials technology co., LTD. In the country under a series of macro-control policies on, since this year, a line of big cities real estate industry is very weak, but two lines, three lines city new buildings and second-hand housing transactions is very hot, many real estate developers have will shift the focus to two lines, three lines city and even on the real estate development of small towns. At present, more than 70% of the pipe material in real estate industry is made of plastic pipes. With the acceleration of urbanization, second-tier and third-tier cities will replace the first-tier cities, becoming the new engines of the real estate industry and driving the demand for plastic pipes and fittings. It is expected that the demand for plastic tube materials in this field will grow by about 20% a year, and the contribution to the growth of plastic pipe industry will exceed 30%.
Guo Runmin believes that in the second line, three line city real estate industry rapid development at the same time, with the supporting infrastructure, especially the urban water supply and drainage pipeline, heating, gas supply pipe network construction also will be accelerated. At present, the emerging city gas tube, heating tube, 50% 40% is about 70% more than 70% water supply pipe and the drain all use the plastic pipe material, the old city pipe network transformation also USES mostly plastic and plastic compound pipe pipe fittings, all of these, will significantly increase the amount of plastic pipes, pipe fittings, booster industry can continue to grow.
Innovation wins the market
"Although the market for plastic tubes is attractive, due to excess capacity and fierce competition, not all companies can benefit from it. Only those companies that are constantly innovating can win the market and reap the rewards. Wang zhanjie reminds us.
At present, there are 3,000 plastic pipe production enterprises in China, with total output of over 17 million tons, he said. In 2010, the plastic tubing production while a record 8 million tons, exports hit a record high, up to 396000 tons, surged 24.53%, but there are still more than half of idle capacity, shows that industry overcapacity is very serious. At present, many enterprises is still in the implementation of expansion plan, and as the real estate regulation policy effect, large and medium-sized city real estate and urban water network reduces the rigid demand for plastic pipe material, construction industry overcapacity will worsen. At present, although the rural market and the second line, third line cities, as well as the large water conservancy project construction, and can increase the demand forecast, can of positive long-term development of the industry, but the market needs the enterprise to develop, cultivate and still needs over time, will not have immediate pull effect. In the next few years, especially in the first two years of the 12th five-year plan, the growth rate of the plastic tube industry may be lower than the average speed of the "eleventh five-year plan", and the market competition will be more intense. Enterprise only through technology innovation, management innovation, product innovation and business model innovation, development and production of market demand for large, large diameter, coil tube and other high technology content, high value-added differentiated products, and has the capability of the supply of complete, meet the demand of users multi-level, to seize the opportunity to realize leap-forward development.
