US Pipe Demand to Exceed 11 Billion Feet in 2013

Despite a weak current construction environment, pipe demand is expected to turn around and grow 2.0 percent annually to 11.1 billion feet in 2013. Stimulants include renewed activity in the construction sector, the growing obsolescence of sewer and drainage systems, and needs to upgrade municipal water systems. Plastic pipe will advance at the fastest pace. Construction and energy markets will provide the best market opportunities, together accounting for nearly two-thirds of total pipe use in 2013. These and other trends, including market share and product segmentation, are presented in Plastic & Competitive Pipe, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Demand for plastic pipe will advance 2.3 percent yearly to 5.0 billion feet in 2013, creating demand for 9.2 billion pounds of resin. Polyvinyl chloride (PVC) pipe will remain dominant and be driven by improved joining technologies and resins such as molecularly oriented PVC. High density polyethylene pipe will exhibit the fastest plastic pipe growth based on opportunities in potable water and corrugated drain and sewer applications.  Demand for reinforced thermosets and acrylonitrile-butadiene-styrene resins will expand at a below average pace due to mature markets and more specialized applications.

Copper pipe demand is forecast to grow 1.9 percent annually through 2013, paced by opportunities in service and distribution pipe. Demand for steel pipe will grow at a slow pace through 2013, with above average growth anticipated in gas and oil pipe. Aluminum pipe demand advances will result from opportunities in motor vehicle and refrigeration equipment uses. Demand for concrete pipe will rebound and expand 2.0 percent per year through 2013 to 180 million feet, driven by drain and storm sewer applications. More favorable raw material pricing will also contribute to pipe growth.

Structural, mechanical and miscellaneous uses, led by refrigeration tubing, will remain the leading pipe market through 2013, followed by potable water and conduit. Refrigeration tubing advances will be driven by rebounding refrigeration equipment shipments, with further gains threatened by continued declines in commercial refrigeration manufacturing. Potable water pipe demand will expand as the building construction market recovers. Conduit demand will also experience renewed growth after ten years of declines. Fastest growth is anticipated for drain pipe in light of renewed construction activity and needs to renovate obsolete and overloaded pipe networks.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.