Research and Analysis on the development status of

2022-10-02
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Research and Analysis on the development status of domestic plastic pipe industry

according to the statistics of China plastic processing industry association, at present, the annual growth rate of China's plastic pipe market has reached 15%, ranking first in the world. Driven by relevant national policies, the development of domestic plastic pipe industry has shown a strong growth trend in recent years, and has become the main force of domestic plastic processing industry. However, the good development environment has not made it easy for domestic plastic pipe enterprises to move forward. Since 2003, the price of raw materials has risen, and the pressure formed has placed a heavy burden on the enterprise's variable strain rate. In particular, the price of PVC resin is adjusted after the sample is clamped, and the clamping force control valve and clamping speed control valve soar. Some small and medium-sized enterprises with weak strength are even more difficult to operate and are on the edge of loss. The enterprise as a whole is facing severe challenges

soaring raw materials and soaring costs

since 2003, due to the rise in the world crude oil price, the world plastic raw material market price has risen across the board. Driven by the price of the international market, the domestic polypropylene, polyethylene and polyvinyl chloride prices are also rising. In particular, PVC resin, due to the shortage of electricity, the price of chlorine, the main raw material of PVC, has tightened and increased, and the price of PVC has risen. Coupled with the victory of the anti-dumping investigation in September 2003, the price of PVC resin has been stimulated by two factors. For PVC pipe enterprises, the price rise of PVC raw materials alone will increase the product cost by more than 20%

banning and limiting lead salt is even worse.

PVC pipe enterprises should not only try their best to absorb the cost pressure caused by the rising price of raw materials, but also face the situation of banning lead. Lead salt stabilizer has been used as the main heat stabilizer by domestic PVC pipe enterprises because of its low price and excellent performance. However, for the sake of environmental protection, the announcement of the construction part in 2004 clearly pointed out that CPVC (hard vinyl chloride) pipes for water supply used nationwide must be produced with non lead salt stabilizers. Since April 1, Beijing has restricted the use of PVC drinking water pipes and fittings using lead salt as stabilizer. The Ministry of electric power has decided to prohibit the use of lead salts and organotin stabilizers for CPVC (chlorinated polyvinyl chloride) power protection tubes within the scope of the Ministry of electric power's entry permit in order to prevent environmental pollution. While other stabilizers have higher prices on the premise of ensuring their usability because they can quickly and efficiently manufacture fine and complex three-dimensional structures, which virtually increases the cost burden of pipe enterprises

single variety domestic and foreign troubles

huge market capacity and low entry threshold have made plastic pipes a hot project invested by all parties in China in the past few years. At that time, due to blind investment and overcapacity of low-end products, its malignant effect has begun to appear. Take the PVC pipe enterprise with the largest market share as an example. At present, its products are still concentrated in urban and rural water supply and drainage pipes and pipe fittings, rainwater drainage pipes and pipe fittings, which leads to its market capacity tending to saturation and increases the intensity of competition in this product field. In order to compete for the market, some enterprises adopt price driven strategies, especially some small enterprises dump low-priced products with inferior products. The price war is becoming increasingly fierce, and they are in a vicious price competition situation

the original competitive advantage of PVC pipe enterprises with low scientific and technological content and single variety of products was that the price was lower than that of polyethylene and polypropylene pipes, while the rise in raw materials made them in a passive situation, providing an entry for competitors. In addition to the original gas pipe and heating pipe, the emerging market application of polyethylene pipe has also begun to enter the urban and rural water supply and drainage pipe and pipe fitting market in recent years. Moreover, the price rise of polyethylene resin is smaller than that of PVC, the production cost pressure is not large, and there is no lead ban, which adds a competitive advantage. It can be said that PVC pipe enterprises are currently in a situation of domestic troubles and foreign aggression

actively adjust and recapture the market

from the trend of the world plastic market, the high price of raw materials will continue for some time. However, due to its consumption characteristics, there is relatively little room for price increase of plastic pipes. It is a drop in the bucket to solve the business pressure to place hopes on the fall of raw material prices, and it is impossible to fundamentally get rid of the passive business situation, so the marketing strategy must be adjusted

first, we should shift from product price competitiveness to brand competitiveness, strengthen the ability to deal with emergencies, and build our own competitive fortress. Various signs show that domestic plastic pipe production enterprises have entered the era of meager profits. In order to win sustainable and stable development space, enterprises should establish a brand image as soon as possible. Large enterprises can absorb the rising cost caused by the rising price of raw materials by optimizing production management capacity. For small and medium-sized enterprises, it is advisable to work together to reduce production costs through centralized procurement of raw materials

second, we should strengthen international trade and expand the world market. Compared with the domestic PVC pipe market, the domestic plastic pipe products have price advantages in the international market, which are paid more and more attention, and have relatively high profits

third, we should strengthen the development of new products and open up new profit points. Compared with advanced countries, there are still many blank areas in the application of plastic pipes in China, which is the new market capacity space, such as the research and development of plastic cloth hose products. At present, the production of domestic plastic pipe enterprises is mainly concentrated in plastic rigid pipes, while there are relatively few enterprises involved in the production of plastic hoses, so the market is relatively broad, especially for hoses with high technical content, which have few competitors and high profit margins

fourth, we should improve the ability of marketing innovation. In the past, domestic plastic pipe enterprises mostly adopted the marketing and promotion strategy of industrial products. In fact, in terms of the essential characteristics of plastic cloth pipe products, some plastic pipes, especially civil products, might as well adopt the marketing and promotion strategy of consumer goods to keep them clean and establish famous brands. In terms of the current product sales channels of domestic plastic pipe enterprises, we should speed up the network construction and strengthen the promotion of market terminals, such as cooperating with large building materials supermarkets

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