The raw materials of plastic pipes are mainly PVC, PE, PP and other macromolecular materials. In China, PVC raw materials are mainly produced in the chlor alkali industry, a small amount in the petrochemical industry, and PE and PP raw materials are mainly produced in the petrochemical industry. The upstream industry of plastic pipe industry is mainly the production industry of PVC, PE, PP and other resin raw materials. Its technical level, product quality and price fluctuation have an impact on the development of the industry. Pipeline accounts for a relatively high proportion of PVC consumption types in China, about 40%. At the cost end, the cost of raw materials accounts for a high proportion and is highly related to crude oil, which directly affects the gross profit margin. Plastic pipeline raw materials account for more than 80% of the main business cost, and PVC/PE/PPR resin raw materials account for nearly 70% of the operating cost. The price is highly related to the international oil price and coal price. PE and PP belong to petrochemical industrial products, while calcium carbide PVC (domestic mainstream) belongs to coal chemical industrial products. Upstream suppliers include large chemical enterprises such as PetroChina, Sinopec, Zhongtai Chemical, Tianyuan Group and Xinjiang Tianye. Plastic pipeline enterprises with low bargaining power generally respond by cost plus. Gross profit margin fluctuates greatly. The two major fluctuations in recent years are 2015-2016 and 2020-2021. Not only plastic pipe enterprises, but also the gross profit margin of waterproof, coating and artificial turf enterprises highly related to oil also fluctuated significantly. PVC production methods mainly include calcium carbide method and ethylene method. In China, calcium carbide method is the main method, and the cost of electricity accounts for more than half of the production cost; The ethylene rule is to extract ethylene from petroleum and get PVC resin through chemical reaction. The production cost mainly focuses on the price of petroleum.
Hainan plastic inspection well
The downstream demand of plastic pipes is mainly municipal, construction and agricultural pipes. The downstream applications of plastic pipes include water supply and drainage pipes in buildings and heating, water supply and drainage pipes in municipal construction, agricultural water supply and drainage pipes and irrigation pipes, industrial sewage pipes, gas pipes, and power communication casing pipes. Municipal, construction and agriculture are the main application fields of plastic pipes in China, of which agriculture accounts for 27.2%, municipal demand accounts for about 24.5%, and construction demand accounts for about 16.9%. Generally, PVC, PE and PPR pipes can correspond to the front end, municipal works and rear end of the real estate. The extensive downstream has provided support for the demand for plastic pipes, and the demand for downstream home decoration, municipal, gas and other fields will continue to increase.
At present, the highest proportion of downstream supply of plastic pipes is agricultural pipes, municipal water supply and drainage, and building water supply and drainage.
