Future price of crude oil at New York Mercantile Exchange hit a new high of 44.73 dollar a barrel since 1983. China is facing the most serious electricity shortage in last 20 years.

All the above happened in 2004. To connect these events, one term is sufficient: energy crisis.

Both government and citizens have to pay for the increased energy price. One way to control the ascending power bill is to switch to the solar energy, such as using the solar energy domestic water heater. In fact, the use of solar energy water heater is supported both by the government policy and the market. In 2008 Beijing Olympics, solar energy will be the major power source. In the market side, domestic solar water heater is already occupying about 10% of domestic water heater market, about 4 million unit, which means a demand of 80 million meters solar hot water pipe, a market much larger than that of stainless steel tubes for electric and gas water heaters. It is estimated that the total market size of solar hot water pipe in China is about 100 million meters a year, with 10% annual growth. 80% of products are multilayer pipes. In terms of sizes, 1216 accounts 70% of all pipes while 1418 and 1620 possess 25% of the market.

There is a fact more interesting than the market size. In China, one crucial characteristic differs solar hot water pipe from others: it comes free with the heater. It has become a practice that solar water heater producers enclose certain length of hot water pipe with the equipment without making profit on it. As it is only a cost to heater producers, lower cost product is preferred than quality but higher cost ones. In fact, it can be seen that in certain upper market heaters barely qualified multilayer pipes are enclosed. Moreover, solar hot water application does not have strict requirement for the connection pipe and customers do not possess the expertise to identify the product quality. For all these factors, cheap pipe with low quality is the mainstream.

To sum up, solar hot water pipe is a growing market on a 100 million meter basis. Yet currently this market is flooded by low price pipes. Interested extruders may consider following two routes. The first route, to confront the cut-throat competitors in China with even-lower price. Or the second one, to educate customers or convince the heater producers to opt-in quality pipes. Either way will be challenging. Before such dilemma, Foshan Rifeng Enterprise steps forward and leads the competition by targeting markets that demand quality products.

Contact: Please visit www.Rifeng.com or E mail overseas@rifeng.com
Foshan Rifeng Enterprise Co., Ltd.
Tel: +86-757-82302754, 82301768
Fax:+86-757-82302879