TPT November 2014

Industry News

US demand for pipe set to exceed $63bn by 2018 US demand for pipe is expected to rise 7.3 per cent per year to $63.5bn in 2018. Gains will be driven by strong growth in crude oil and natural gas activity, as pipe is used extensively in drilling and oil and gas pipeline applications. Demand will also be supported by a projected rebound in building construction expenditures. Increasing housing completions and strong interest in kitchen and bathroom renovation projects will boost demand for drain, waste and vent pipe, while growth in non-residential building construction will spur demand for conduit. These and other trends are presented in Plastic & Competitive Pipe , a new study from The Freedonia Group, Inc. According to analyst Matt Zielenski, “Steel accounted for the largest share of pipe demand by value in 2013 with 62 per cent of the total, supported by its use in the large oil and gas market. Steel pipe is dominant in oil and gas applications due to its low cost, durability and compression strength.” The high level of drilling activity and the efforts of oilfield service professionals to increase the size and scope of the USA’s network of transmission and distribution lines will drive gains. Plastic pipe demand is anticipated to rise at the most rapid pace of all materials, advancing 8.7 per cent annually until 2018. Growth will be spurred by the increasing use of plastic pipe at the expense of such materials as steel and concrete. In such applications as potable water and sewer and drainage, plastic pipe will increasingly be specified by consumers trying to reduce maintenance and replacement costs. Rebounding building construction expenditures will spur demand for plastic pipe used as conduit, gas distribution, and drain, waste and vent pipe. Polyvinyl chloride (PVC) was the leading plastic resin used to make pipe in 2013 and will remain so in 2018. PVC pipe is used in such applications as potable water distribution, sanitary sewer, conduit and agriculture. Demand will benefit from the material’s durability and resistance to degradation. High-density polyethylene (HDPE), which accounted for the second largest share of plastic pipe demand in 2013, is expected to see the strongest gains through to 2018, boosted by the use of HDPE pipe in sewer and drainage, potable water and natural gas distribution applications. HDPE pipe offers such advantages as durability and corrosion resistance. The full 366-page study is available for purchase from The Freedonia Group.

The Freedonia Group, Inc – USA Email: info@freedoniagroup.com Website: www.freedoniagroup.com

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N ovember 2014