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Analysis of PE pipe trend overcapacity situation is not optimistic

Market Research Report, the June national PE pipe market situation is not good, overcapacity is a big reason, coupled with the rainy days, busy, the site operating rate is not high, pipe demand are not steady, a lot of PE pipe manufacturers operating rate of less than 3.
China plastic pipe industry in the years 2008-2012 yield an average annual increase of 25.7%, rose from 4600000 tons in 2008 to 11000000 tons in 2012. Data shows, in 2012 Chinese plastic pipe production is 10%, the growth rate dropped to a minimum of 5 years. Reasons: on the one hand by the downturn in the economic environment influence, on the other hand, because of Chinese real estate and property market continued suppressed by. Although the growth rate slowed down, but still maintained a growth momentum.
Entered in 2013, China plastic pipe demand continues to increase, and the overall performance than in 2012. On the one hand by the government for infrastructure projects to promote investment and construction; on the other hand is the acceleration of industry consolidation, some no exploitation, no innovative small enterprises in accelerating the elimination, some products of good quality, large scale of PE pipe manufacturers, are constantly introducing new technology, innovation and development, such as Tianjin Manhua Pipe Co. company; in addition, since the beginning of 2013, PE raw material prices continued to low consolidation, PE pipe production cost profit can be controlled. In the special period, the plastic pipe business should have a sense of social responsibility, not only seek immediate interests, to improve the overall level, we must reject fake pipe!