US demand for pipes to exceed $63bn
Washington, August 7, 2014
The US demand for pipes is expected to grow 7.3 per cent per year to $63.5 billion in 2018, driven by strong growth in crude oil and natural gas activity, as well as increasing housing completions, a report said.
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 nation’s network of transmission and distribution lines will drive gains.”
Plastic pipes demand is anticipated to rise at the most rapid pace of all materials, advancing 8.7 per cent annually through 2018, supported by a projected rebound in building construction expenditures, a study by The Freedonia Group said
The growth will be spurred by its increased use in place of materials such as steel and concrete. In applications such as potable water and sewer and drainage, plastic pipes will be increasingly specified by consumers to reduce maintenance and replacement costs, it said.
Currently, polyvinyl chloride (PVC) is the leading plastic resin, followed by high-density polyethylene (HDPE), used to make pipes and its demand will benefit from the material’s durability and resistance to degradation. – TradeArabia News Service