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Guangdong Cable  Liwan Co., Ltd.

Contact: Mr. Xu

Phone: 020-82290338

URL: www.xliwan.com

Address: No. 823, Maogang Road, Yuzhu street, Whampoa District, Guangzhou

Current location:Home » News » Common problem » Wire and cable industry continues to grow huge space for development of market demand
Wire and cable industry continues to grow huge space for development of market demand
Upload OF:2016-03-31 09-23-17 Updated:admin

Wire and cable manufacturing industry is the largest industry in the value of electrical appliances industry more than twenty sub-sectors, the electrical appliances industry occupies a quarter of the value of the scale. Its products are widely used in various sectors of the national economy, provide important support for the development of electric power, energy, rail transportation and other industries, the development of various industries indispensable foundation equipment, is the foundation of a modern economy and society to protect the normal operation.

    In recent years, along with the sustained and rapid development of Chinese economy, the wire and cable industry to grow rapidly. Data show that in 2006-2010, the wire and cable industry average growth rate of 27.62 percent, industrial output in 2006 from 4,136.61 one hundred million yuan rose to 925.5 billion yuan in 2010, by 2011, China's wire and cable industry output value reached 11,438 yuan, the first time exceeded one trillion yuan. So far, China has become the largest country in the global wire and cable manufacturing scale.

    In 2012, GDP growth slowed down due to the global financial crisis, domestic economic restructuring and other reasons, the wire and cable industry faces problems more prominent, first, China's wire and cable manufacturers nearly ten thousand, but capable of producing fire-resistant cables , urban rail transit cables, heating cables, data communication cables and other special cables few manufacturers, accounting for the number of existing wire and cable manufacturers the proportion of less than 1%; Second, China wire and cable industry has a serious surplus production capacity, low price competition. A set of data provided by the Ministry of Industry and Information Technology show that in 2012 China's wire and cable industry common wire and cable production equipment utilization generally less than 40%, the high-voltage power cable production capacity utilization was 60%, the small cable companies operating rate is less than 30 %, the cable industry has far exceeded the capacity of the domestic market demand for cable products with its focus on low-grade ordinary basic cable in the field, relying on low prices to snatch market, intense competition, profit margins in the areas of high-end specialty cable, domestic enterprises accounted for very less market share. Third, the international giant has a major push into China, industry competition. Up to now, the French Nexans, Prysmian Italy, the United States General Cable, Japan's Sumitomo Electric and Furukawa Electric of Japan and other world-famous wire and cable giants have already entered the Chinese market, occupying most of the high-end market share. Fourth, China's wire and cable industry capacity for independent innovation is weak, inadequate investment in R & D, product upgrading slow, especially poor SMEs, independent design and development capability, there is no mechanism for the development of wire and cable products, materials, processes and equipment organic combination development, leading to slower industry.

    Face of adverse factors, the domestic wire and cable industry have begun to seek a breakthrough. Stage of China wire and cable industry prominent problem is the issue of product structure, ordinary cable supply is more than enough supply of special cables. Thus, the market and changes in national policy guidance, product restructuring and upgrading, improving product technology content, has become the way of the future development of the industry.

    According to the China Electrical Equipment Industry Association Branch of the wire and cable to develop a "Chinese wire and cable industry," second five "development guidance" forecast, wire and cable industry a huge space for development, especially the special cable market demand will continue to grow. Energy, clean, renewable energy will be to develop the rapid development of natural gas will drive a lot of investment and promote the development of wire and cable; the transportation sector, the demand for urban rail traffic signal cable is about 1.5-2 ten thousand km / year, annual output of about 400 million yuan; to the "twelve five", the low-voltage wire and automobile demand will reach 18 million km / year, etc.; the construction sector, electrical safety and environmental requirements will continue to promote fire-resistant cable, LSZH development of the cable, building wire demand is expected to reach 65 million km / year.

    To sum up, China wire and cable industry in general on the opportunities and challenges, industries and enterprises must actively change the mode of development, to seek their own core competencies, identify their own market positioning, cut specialty cable segments, enhancing the overall competitiveness in order in the increasingly fierce market environment to survive and develop.

    Source: Investment Letters


Phone: 020-82290338 Contact: Mr. Xu

Address: No. 823, Maogang Road, Yuzhu street, Whampoa District, Guangzhou