The market demand for PPR pipes shows a growing trend and the industry has good development prospects

PPR pipes are called random copolymerized polypropylene pipes and type III polypropylene pipes. They are products synthesized from PP and PE through the gas phase method. They have the advantages of heat resistance and insulation, stable performance and moderate price. Compared with traditional cement pipes and cast iron pipes, PPR pipes have the advantages of environmental protection, light weight, corrosion resistance, simple construction and maintenance, etc. They are currently mainly used in agricultural irrigation, building drainage, urban gas and other fields, with a wide range of applications. Market demand is high.

Due to the particularity of the application scope of PPR pipes, the current market demand is mainly divided into two major areas, one is the retail home scene, and the other is engineering bidding orders. The consumers are construction companies, real estate companies, municipal units, etc. According to the “2021-2026 PPR Pipe Industry Market In-depth Research and Investment Prospects Forecast Analysis Report” released by the Industrial Research Center, the benefits Due to the development of real estate, gas and other industries, my country’s PPR pipe market demand continues to rise, reaching 1.31 million tons in 2020. With the growth of consumer demand, the PPR pipe market size has also continued to rise, from 15 billion yuan in 2016 to 21.4 billion yuan in 2020.

The production threshold of PPR pipes is low, there are many production companies, and the market competition is fragmented. At present, Weixing New Materials, Yonggao Co., Ltd., Xiongsu Technology and other companies account for a relatively high proportion. Among them, Weixing New Materials accounts for about 12%, making it the leader in the industry. enterprise. Affected by end market demand, Weixing’s new material revenue has been relatively stable in the past two years, at around 2.4 billion yuan. The PPR pipe industry has serious product homogeneity, and the market has entered low-price competition. Leading companies with brand influence will benefit more, and market concentration will continue to increase in the future.

PPR pipes have obvious advantages, and domestic housing and urban construction are still ongoing, and urbanization continues to advance, bringing demand in areas such as building water supply and heating pipes. PPR pipes have the advantages of energy saving, material saving, water saving, etc., and the cost is relatively low. Therefore, there are no substitute products in the short term. The market demand for PPR pipes will still show a growth trend. It is expected that the size of my country’s PPR pipe market will reach 55 billion yuan in 2025.

Benefiting from the growth of terminal demand, the gross profit margin of the PPR pipe industry has basically remained at around 22%. However, because leading companies have advantages in brand, channels, supply chain and technology, their gross profit margins are higher. In 2020, the gross profit margin of Weixing New Materials was more than 55%, and that of Yonggao Shares was around 44%.

Industrial analysts said that PPR pipes have a high cost performance and are in high demand in construction, agriculture, and municipal projects. Benefiting from the development of terminal industries, the domestic PPR pipe market demand has shown a growth trend in recent years. It is expected that it will still show a slow growth trend in the next five years, and the industry development prospects are good. In terms of market competition, due to the low threshold for PPR pipe production, there are many companies in the market, and the concentration is low. However, due to advantages such as supply channels and brands, the proportion of large companies continues to increase, and the market concentration will show an increasing trend in the future.