TPi January 2015

business & market news

Pressure pipes for water and gas – the European market

addition to demand in each country, it looks at the supply side, as well as at the market for raw materials. Plastic pipes continue to gain market share from ductile iron pipes,

By the end of 2014, almost 300,000km of drinking water and natural gas pipe was installed in Europe, according to the new edition of the study ‘Pressure Pipes for Water and Gas – the European Market’ by Applied Market Information. Pipes for water supply and distribution represented more than 70 per cent of that volume, with the balance being gas transmission and distribution pipes. Between 2007 and 2013 the European demand for pressure pipes lost roughly a fifth of the volume. Demand is expected to grow between 2014 and 2018, as the European construction industry recovers. However, 2018 volumes will remain below those registered in 2007, when demand peaked. In addition, Europe will see a lot of variability, with some markets performing very poorly, while others exhibit a relatively robust recovery. The study covers 31 European countries (the 28 European Union members, plus Iceland, Norway and Switzerland). In terms of pipe systems, it recognises polyethylene pipes (PE80, PE100 and PE100RC), PVC (including modified and oriented PVC) and ductile iron pipes. In

Trend in installed volume of pressure pipes

However, this drives a level of commoditisation – product differentiation becomes considerably more difficult to achieve. This does not mean that differentiation cannot be generated. The key factor remains new product development. Progress in technology continues, in terms of manufacturing processes, component and system design, installation techniques, etc. New, improved raw material grades have also been developed, providing solutions to evolving market needs. Although reputed to be conservative, this market has a good track record of embracing and rewarding valuable innovation. Applied Market Information Ltd – UK info@amiplastics.com www.amiplastics.com

but there are market sectors in which the latter maintain strong positions. Inter-polymer competition is driving fast changes in demand for the various plastic pipes systems. A certain degree of consolidation has occurred on the supply side: the market share of the top ten pressure pipes manufacturing groups has increased from around 50 per cent in 2010, to 57 per cent in 2014. Nevertheless, the supply continues to be relatively fragmented, with a large number of small players serving local markets. Competition among European resin manufacturers is growing in intensity. Strong regulation and standardisation prevent such competition from negatively affecting the quality and performance of products.

IIL expansion plans International Industries Limited (IIL), a producer of GI pipes, API pipes, cold rolled tubes, polyethylene and PPR C pipes, is planning to commission a stainless steel tube factory in Karachi, Pakistan, from January 2015, and a large diameter tube mill by mid-2015. The company has also incorporated a wholly owned subsidiary in Australia: IIL Australia Pty Ltd.

participate in BORU 2015, in Istanbul, Turkey.

to cater to the growing demand of gas companies and the construction sector in the region.

International Industries Ltd – Pakistan inquiries@iil.com.pk www.iil.com.pk

IIL, which has 50 years of pipe manufacturing experience, will also

IIL’s manufacturing unit

IIL Stainless Steel Tubes will initially cater to the needs of ornamental and auto sectors for various applications by manufacturing austenitic and ferritic series in conformance with the ASTM A-554 international standard. In addition, the company is setting up a 12" diameter API and structural pipe mill

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January 2015 Tube Products International