Analysis of Development Status of Cable Industry

In recent years, the sustained and rapid economic development of our country, the advancement of urbanization, and the construction of major projects such as large-scale power stations, transmission of power from the west to the east, and power grids have all contributed to the high growth rate of the wire and cable industry.

1. Development status of the global cable industry From the perspective of the world cable industry technology development trend, the current development direction is: large capacity, ultra-high pressure, no oil, short circuit, high reliability, and maintenance-free. At present, cross-linked cables of various voltage grades have gradually replaced traditional oil-filled paper-insulated power cables, and the application of high-voltage and ultra-high-voltage cross-linked cables has become increasingly widespread. In Europe, America, and Japan, the requirements for cables used are increasing. The use or import of non-environmental cables has been strictly prohibited. With the promulgation of the EU RoHS directive, the large-scale adoption of eco-friendly wire and cable has become a global trend. In recent years, due to the rapid economic growth of emerging Asian countries, the world's wire and cable production centers have shifted to Asia, spurring the rapid development of wire and cable industries in China, India, Vietnam, the Philippines, and Egypt in the Middle East, and Central and Eastern Europe. Due to the unification of Europe and relatively low manufacturing costs, the wire and cable industry has also grown rapidly.

2. Development Status of China Wire and Cable The wire and cable manufacturing industry is the industry with the largest output value in more than 20 subdivided industries in the electrical and electronics industry, accounting for a quarter of the output value scale.

China's economy will exhibit two major characteristics in 2012: First, in the year of economic restructuring, the annual growth rate will gradually decline, and the high-speed growth period may end; second, monetary policy tightened in 2011 to control inflation. This has brought about financial constraints and will show a lenient monetary policy in 2012.

A big cable industry believes that the crisis is dangerous and opportunities exist. The slowdown in GDP growth, the unbalanced economic structure, and the chaotic market competition are all dangerous. However, such a period indicates that the era of “strong and consistent” has come. The rapid development in the past, the huge demand, the low concentration of the industry, the low level of repeated construction led to a big flaw in the industrial structure of the industry, "high-end vacancy, low-end melee" phenomenon.

With the slowdown in GDP growth and the adjustment of the industrial structure, changes in market demand, innovation in business models, improvement in industry standards, competition in cost efficiency, and volatility in the price of copper in major raw materials will all promote survival of the fittest and create opportunities for industry consolidation. This will enable the truly outstanding cable companies to have the opportunity to integrate surplus production capacity through acquisitions, mergers and acquisitions.

3, industrial control editor view of the cable industry China's wire and cable industry development level and the wire and cable industry compared to an important position there is a big gap. All parts pointed out that the overall level of China's wire and cable product quality is not high, and the quality of dishonesty, counterfeiting and counterfeiting, and other phenomena of untrustworthiness and violation of laws are relatively prominent. Quality problems pose major hidden dangers to safety, environmental protection, and health.

At the same time, the overall capacity of China's wire and cable is seriously excessive, and the utilization rate of ordinary wire and cable production equipment is generally less than 40%. Moreover, the concentration of wire and cable industry in China is not high, and the homogeneity competition between medium and low-end products is severe. Therefore, improving the quality of wire and cable has become the focus of work.