Demand for large diameter pipes till 2012 to grow at 2.2% pa in USA, at 9% pa in China

Large diameter pipe demand in the US is projected to grow 2.2% pa to more than 200 million feet in 2012, valued at US$9.8 bln, as per Freedonia. Advances will reflect needs to expand and modernize an ageing pipe infrastructure, as well as a rebounding construction sector. Concrete will continue to account for over half of all linear pipe footage based on material advantages such as structural integrity, durability, and high compression and pressure resistance. Plastic pipe will present the best growth as a result of resin and machinery improvements, enabling greater penetration of water distribution, sewer and other applications. Storm sewers will remain the leading large diameter pipe market due to widespread drainage applications, and expanded highway and street construction projects. Concrete will account for 54% of all linear pipe footage as a result of its structural integrity, durability, and high compression and pressure resistance. Concrete pipe demand is forecast to grow 1.8% pa to more than 110 mln feet in 2012, stimulated by opportunities in storm sewer applications. Drainage and irrigation uses will expand at a faster pace, driven by expanding infrastructural construction projects. Best opportunities are anticipated for concrete pipe in the larger diameters due to greater competition from plastic pipe in the smaller segments. Large diameter plastic pipe demand will grow 4% annually through 2012, creating a market for 1.2 bln lbs of resin. High density polyethylene (HDPE) pipe will present the best growth opportunities, closely followed by polyvinyl chloride (PVC). HDPE pipe demand will be driven by rapid advances in water distribution and corrugated storm sewer applications. PVC pipe demand stimulants include improved joining technologies and resin improvements such as molecularly oriented polyvinyl chloride. This will enable continued inroads into larger diameter storm and sanitary sewer uses. Large diameter steel pipe demand will increase 1.8% pa through 2012 due to the material�s high strength, rigidity and pressure tolerance in expanding natural gas and oil pipe uses. Natural gas and petroleum pipe will present the best opportunities due to growing energy requirements. Cast iron pipe will remain the material of choice in applications where high water pressure capabilities are required. Demand for clay pipe will decline as a result of competition from higher performing and lower cost plastic pipe. Natural gas markets will be stimulated by high energy costs, increased exploration and drilling activity and the excellent performance of HDPE pipe in gas distribution uses. Good growth for drainage and irrigation pipe will result from rebounding construction activity and widespread drainage applications. Sanitary sewer growth will be based on needs to address problems with combined sewer overflows and the maintenance of clean water standards.

U.S. Large Diameter Pipe Demand (million feet)
% Annual Growth
Item	2002	2007	2012	2002-2007	2007-2012
Large Diameter
Pipe Demand	163.3	178.1	203.4	1.7	2.7
Concrete	92.7	99.1	109.3	1.4	2.0
Plastic	31.9	37.8	49.6	3.4	5.6
Cast Iron	13.7	14.3	15.2	0.9	1.3
Steel	24.0	26.1	28.5	1.7	1.8
Clay	1.0	0.8	0.8	-4.3	-0.3

Demand for large diameter pipe in China is expected to increase 9% pa to 87.7 mln meters in 2012, valued at 87.8 bln yuan, as per Freedonia. Gains will be fueled by continuing increases in spending on physical infrastructure construction, which will support demand for large diameter pipe in drainage, gas and petroleum distribution, and other uses. Construction of new residential and nonresidential buildings will provide opportunities for large diameter pipe in sewers, water distribution and district heating systems. Growth in manufacturing shipments, petroleum and gas extraction, and refining will generate demand in the process manufacturing and petroleum and natural gas industries. In addition, concerns about the quality of available water supplies, especially in rural areas, will boost demand in water treatment and discharge applications. Concrete, which accounted for 44% of all 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% pa through 2012, faster than growth for any other material. Large diameter plastic pipe will make inroads at the expense of steel, cast iron and other materials due to cost and installation advantages, plus significant performance improvements, which will make large diameter plastic pipe more competitive in areas such as underground sewers, district heating, drainage and water distribution.
Demand for large diameter pipe used in sanitary sewer, drainage, storm sewer, and natural gas transportation applications will see faster growth than the industry average. The most rapid gains will be in the sanitary sewer segment, boosted by strong residential construction and initiatives to improve living conditions in the countryside. 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 non-building construction and the need to deliver runoff to existing bodies of water. Advances will be further stimulated by rapid increases in urban infrastructure construction. Rural infrastructure construction will also drive gains as the government addresses a severe imbalance in living conditions between the urban and rural populations.