1. Favorable factors

(1) Strong support from national industrial policies

In the "Thirteenth Five-Year Plan for National Economic and Social Development" reviewed and approved at the Fourth Session of the 12th National People's Congress, the implementation of innovation-driven development strategies, the modernization of agriculture, the optimization of modern industrial systems, the expansion of the network economy, and the modernization of modernization The infrastructure network, the promotion of new urbanization, the construction of a new all-round opening pattern, the acceleration of the improvement of the ecological environment, the full implementation of poverty alleviation, strengthening and innovative social governance are all closely related to the plastic pipe industry, which will promote the technological level of the plastic pipe industry. And healthy development, promote the further expansion of the plastic pipe application market.

(2) Sustained and stable development of the national economy

In recent years, in the face of the complicated and severe international economic situation and the arduous and arduous domestic reform and development and stability tasks, China has adhered to the theme of scientific development and accelerated the transformation of economic development mode as the main line, and the national economy has been generally stable. According to the “Outline of the Thirteenth Five-Year Plan for National Economic and Social Development”, “the economy maintains medium- and high-speed growth. On the basis of improving development balance, inclusiveness and sustainability, by 2020, GDP and urban and rural residents Per capita income has doubled compared with 2010, the main economic indicators are balanced and coordinated, and the quality and efficiency of development have improved significantly."

As far as the world is concerned, due to the economic development trend in line with the current world's "energy saving and emission reduction", "circular economy" and "low carbon economy", plastic pipes have been rapidly emerging around the world in recent decades, consumption growth and national economic production. The growth of total value is related to the development of China's plastic pipelines. In the future, the macro economy will continue to improve and become an important guarantee for the rapid development of the plastic pipe industry.

(3) Wide range of downstream market demand

With the sustained and stable development of China's economy and the acceleration of urbanization, the plastic pipe industry is facing a rare development opportunity. The demand for plastic pipes in the construction industry, municipal engineering, agriculture, industry and other fields is increasing, which has promoted China's plastic pipes. The industry is developing rapidly.

First, the amount of supporting municipal projects under the background of urbanization construction is still relatively large. At present, the municipal public water supply pipe of the municipal public pipeline in China needs to be updated and repaired. Urbanization directly promotes the expansion of urban built-up areas. In the process of urban built-up area expansion, water supply, heating, drainage, sewage pipelines and other related pipeline construction are essential supporting facilities, and fixed assets investment in municipal public facilities will continue. Drive the demand for plastic pipes.

Second, the recycling of sewage will drive the rapid growth of plastic pipes. At present, many cities have begun to implement “rain and sewage diversion” to renovate the “rain and sewage co-current” pipelines constructed in the previous year. After the transformation, the sewage is required to be treated and then flow into the rivers. “Rain and sewage diversion” and “sewage resource utilization” will promote the construction of urban drainage pipe network and sewage pipe network, and will also promote the rapid growth of plastic pipes.

Third, the further implementation of the development of water conservancy construction is expected to drive related demand. According to the "Outline of the Thirteenth Five-Year Plan for National Economic and Social Development", "Strengthen water security, speed up the improvement of water conservancy infrastructure network, promote scientific development of water resources, rational deployment, economical use, efficient use, and comprehensive improvement of water security. Safeguarding ability. Optimize the water resources allocation pattern and improve the comprehensive flood control and disaster reduction system.” The water conservancy construction during the entire “13th Five-Year Plan” period is still an important demand area for plastic pipes.

Fourth, the construction of rural drinking water safety system has driven the upgrading of demand for plastic pipes. During the “Twelfth Five-Year Plan” period, the effective irrigation area of ​​newly added farmland will be 40 million mu. By 2020, the large-scale irrigation district, key medium-sized irrigation districts will continue to be built and water-saving renovation tasks will be completed, which will provide huge market space for plastic pipelines.

Fifth, the gas supply system promotes the development of pipelines. According to the “National Chemical Building Materials Industry “10th Five-Year Plan” and the 2015 Development Plan Outline, the application volume of China's urban gas plastic pipes will reach 40% in 2015, and the demand for PE gas pipes will continue to grow after 2015.

Sixth, the increase of heating pipes has provided a huge space for the water supply pipe market in the building, especially the widespread adoption of floor radiant heating. The coverage of the national floor heating has expanded from northern cities to low-latitude cities such as Shanghai, Wuxi and Nanjing. With the energy saving, comfort and flexibility, adaptability and advanced nature of heating, the floor heating conforms to the market development needs and the market prospect is optimistic.

2. Unfavorable factors

(1) The quality of market products is uneven

At present, different quality products exist in the market at the same time: on the one hand, many plastic pipe enterprises, especially some large backbone enterprises, the product quality meets the requirements of international standards; on the other hand, some small enterprises are impacted by products of “low quality and low price”. In the market, even a few enterprises use unqualified raw materials and fillers to reduce costs, resulting in uneven product quality levels in the market, damaging consumer interests and affecting the healthy development of the entire industry.

(2) Raw material price fluctuations affect corporate income

The main raw materials for plastic pipes are PVC, PE, PP and other resins, and their prices are closely related to international oil prices. Affected by fluctuations in international crude oil and domestic coal market prices, the prices of plastic pipe raw materials fluctuated greatly, resulting in certain fluctuations in the production costs of plastic pipe enterprises, which had a greater impact on the production cost control and external sales of enterprises.

(3) Transportation radius limit sales area

Plastic pipe products have certain transportation radius restrictions, which are difficult to package in transportation, so the proportion of freight to sales is usually higher. Therefore, the sales of large-caliber pipelines are generally dominated by the surrounding markets of production bases, which restricts the growth of sales performance to a certain extent. At present, large enterprises in the industry have set a production base through the national layout to resolve the restrictions on the transportation radius of the sales market.