PVC PIPES MARKET ANALYSIS

Volatility in raw material prices can hamper the growth of the PVC pipes market. PVC resin is the primary raw material used in manufacturing of PVC pipes. However, the prices of PVC resins have witnessed steep fluctuations over the past few years. For instance, according to International Energy Agency Data, between January 2020 to December 2022, global crude oil prices varied between US$ 20 per barrel to over US$ 120 per barrel. Since PVC resins are derived from petroleum-based chemicals such as ethylene and propylene, thus, changes in crude oil prices have a direct impact on prices of PVC resins.  The uncertain geopolitical environment along with supply chain disruptions caused by the COVID-19 pandemic further exacerbated the volatility in oil and gas prices over the past 3 years. This made it extremely difficult for PVC pipe manufacturers to adopt a stable long term pricing strategy.

Opportunity: Developing economies rapid urbanization

Rising urbanization in developing economies provides significant opportunities for growth of PVC pipes market. As more people migrate to cities in search of employment and improved standards of living, there is a constant need to develop modern housing and infrastructure. According to the data published by United Nations, 64% of populations in developing regions will be living in urban areas by 2050, increase of 31% from 1950. Countries like India, China, Nigeria and others are expected to account for a major share of this urban growth in the near future.  This rapid urbanization creates massive demand for piped water supply and sewage systems. PVC pipes have emerged as the preferred choice for such applications due to their durability, flexibility and affordability as compared to traditional pipe materials. These require low maintenance and have a longer lifespan. This makes PVC pipes an attractive option for cash-strapped municipal bodies in developing nations facing challenges of population boom and infrastructure bottleneck. PVC pipes also save construction time and costs as compared to concrete or metal pipes.