China’s plastic pipe output likely to grow by 15% in 2009 –CPPA

04 November 2009 08:11  [Source: ICIS news]

BEIJING (ICIS news)--China’s plastic pipe production is expected to regsiter an year-on-year growth of more than 15% in 2009 driven by government's stimulus package, an official of the China Plastics Piping Association (CPPA) said on Wednesday.

The stimulus was aimed at boosting consumption in the local infrastructure sector and to develop the rural areas in the country, Wang Zhanjie, CPPA’s secretary-general, said.

"The global financial crisis has had limited impact on China’s plastic pipe sector, except that Chinese plastic pipe exports have fallen sharply and pipe demand growth in the local construction application sector is slower," Wang added.

China's plastic pipe production in the first seven months of 2009 was estimated to be around 3m tonnes, up 24% year on year, he said. However, the country’s plastic pipe exports for the same period fell 20.4% year on year to 171,200 tonnes, he added.

Total output in 2008 was about 4.6m tonnes, up 28.18% from the previous year , he said.

The country's plastic pipe demand growth was expected to rise in the future due to a series of government policies introduced recently to promote plastic pipe applications, Wang said.

A total of yuan (CNY) 332bn ($49bn) was estimated to be invested in the sewage treatment facilities across the country under the 11th Five-Year Plan, he said. The cost of upgrading the pipeline network constituted 63% of the total budget, he added.

China was also estimated to invest a total of CNY5,000bn over a period of four years ending in 2010 for upgrading the municipal public utilities, which include upgrading and repairing 130,000 kilometres of water distribution pipelines in the cities, Wang added.

Imports of pipe grade polyethylene (PE) resin into China were expected to remain at high levels as local production of commonly used grades such as PE 100 and PE 80 was inadequate, Wang said.

Polyvinyl chloride (PVC) pipes constituted about 55% of China’s plastic pipe output in 2008, he said.

Polyethylene (PE) and polypropylene (PP) pipes accounted for 30% and 10% of the total output respectively, Wang added.

Zhejiang province in east China was the country’s largest plastic pipe production base, followed by Guangdong in the south and Shandong in the north, he said..

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