Pipes will to remain the main growth sector

Pipes will to remain the main growth sector

The west European HDPE sector suffered from low volume growth, over-capacity and growing competition last year. Consultancy Nexant ChemSystems said consumption of HDPE grew by 1.6% to just over 5 million tonnes last year. Growth was subdued due to slow expansion in the major European economies.

In central and eastern Europe, HDPE consumption grew more quickly at 3.6% to reach nearly 1.6 million tonnes. For 2004, the consultancy is projecting a 4.3% growth in western Europe, due to a recovery in economic activity. Central and eastern European demand is expected to grow at just over 5% at the same time.

Nexant is projecting annual growth in western European HDPE consumption of 5.2% during the next five years. The pipe sector remains the main growth engine for HDPE.

According to Nexant, HDPE pipe consumption grew by just over 4% in 2003 and is projected to grow at an annual average rate of 8.5% during the next five years.