Plastic pipes industry is going through some interesting developments in recent months. In the second quarter, volume growth for the manufacturers in the organised sector was surprisingly good and the same trend has continued in October too.
Volume gains were achieved in the midst of continued price rise for PVC pipes which has increased by more than 25% quarter on quarter basis. However, on year on year basis price rise was not significant. However, continued spurt in PVC prices has put the manufacturers in the unorganised sector in trouble who are finding the procurement of material difficult. As a result, they are unable to cope with supply schedule to the customers resulting market share loss to the organised players.
Rise in PVC price is continuing unabated and according to market experts it will continue to do so for some more time. Expected factory reopening by some manufacturers in USA in the new year and subdued demand for the product in winter in USA, Europe and other leading consuming countries may help to cool down the price in winter.
Similarly demand recovery in CPVC also far better than expectation in the second quarter, a trend which continued in October too. Meanwhile, Lubrizol’s agreement with Finolex has come to an end in September and henceforth the latter is planning inhouse compounding for CPVC products.
Meanwhile, both Astral and Supreme Industries expect their new piping plants in Orissa to come up by the second half of next financial year.