INVENTRA has the pleasure of inviting you to the Twelfth International «Plastics Pipes and Fittings 2018»
Low demand in the housing and utilities sector, high cost of quality feedstock and its shortage are the defining factors for the PE pipe market in Russia that continue to persist for many years now. At the moment, approximately 43% of all utility networks in Russia require a guaranteed replacement, while in fact no more than 1.5% is being replaced due to lack of public financing, especially in the regions. A possible solution to the problem may be public private partnership, which is increasingly being introduced in Russia. What are the prospects for further development of the PPP model?
The growth of consumption of plastic pipes within PPP would require larger volumes of feedstock, currently unavailable locally. Will the situation change after ZapSibNeftekhim is launched? Will the local converting companies be supplied with sufficient raw materials? Increased consumption of PE pipes will lead to fiercer competition among the producers, while some of the market players may get engaged in production of low-quality pipes, and some others - in production of higher-margin products, such as multi-layer pipes. What will the strategy choice of the plastic pipes producers be?
The production of polypropylene pipes in Russia is growing; imported products are being replaced by local pipes; the dependence of the Russian market on imported feedstock grades is decreasing. The drop in demand, connected with lower housing construction, turned out to be not as dramatic as expected. Despite the difficult economic situation, developers continue to commission new buildings. The consumer spending has increased; the growth rates of mortgage and consumer loans are surprisingly high: people have ceased saving money and are ready to spend.
As it has always been the case, the quality of plastic pipes produced in Russia is the general problem for the market. Higher feedstock costs, increased competition, weak regulation and government control are forcing some companies to manufacture products of low quality. We hope that the establishment of new trade associations will help to consolidate the market players in their efforts to challenge counterfeit production.
To request more information about the event please contact us by phone +7 (495) 276-77-88
, +7 (495) 797-49-07
or e-mail: email@example.com
Conference Director: Rafael Grigoryan
, email Rafael.Grigoryan@creonenergy.ru