Overview of the development status of wire and cab

Overview of the development status of China's wire and cable industry in recent years

wire and cable, as one of the largest supporting industries in the national economy, is the foundation of various industries. Its products are widely used in power, construction, civil, communication, shipbuilding, military, aviation, petrochemical and other fields. Wires and cables can be divided into power cables, electrical equipment cables, winding wires, bare wires, communication cables, wires and cable accessories. From the proportion of the size of various external load fields borne by China's wire and cable industry segments in 2017, power cables account for the largest part of the wire and cable business, accounting for 35.7%, followed by electrical equipment cables and winding wires, accounting for 20% and 15.7% respectively

I. Development Status of China's wire and cable industry in recent years

in recent years, China's wire and cable industry has maintained a rapid development momentum. As one of the most important supporting industries of the national economy, the wire and cable industry has a broad market in China. According to the situation in recent years, the sales revenue of China's wire and cable industry has shown an overall upward trend, of which the sales revenue in 2016 reached a new high of 1392.4 billion yuan, and the sales revenue of wire and cable decreased slightly in 2017, which drew lessons from foreign advanced technology of billion yuan for the design of 13513 experimental machine mainframe and accessories. With the increase of China's investment in infrastructure and the further implementation of the development of new energy, military industry, ocean engineering, rail transit, UHV and smart electricity, the market demand for wires and cables is increasing, especially in the area of cables for high-end equipment. The sales revenue of China's wire and cable industry will continue to increase in the future

II. The completion of some major landmark projects in the global power cable industry is good. As the largest part of the wire and cable business, the power cable industry has developed rapidly in recent years. From the perspective of the global market, the market size of the power cable industry has increased year by year from 2012 to 2017. Although the growth rate of the market size has declined after 2015, the overall growth trend remains unchanged, In 2017, the market size of the global power cable industry was US $207.3 billion, with a year-on-year increase of 7.9%

according to the market structure distribution of the global power cable industry in 2017, Asia accounted for the largest proportion of 39%, followed by Europe and the Americas, accounting for 27% and 25% respectively, and other regions accounted for only 9%. With the acceleration of economic development in emerging countries such as Asia in recent years, the production of global power cables has gradually shifted to Asia. China has also taken this opportunity to drive the rapid development of the domestic power cable market

III. analysis of China's power cable industry chain

as an important branch of wire and cable, the structure of power cable industry chain is basically the same as that of wire and cable industry chain. From the perspective of the industrial chain structure diagram of China's wire and cable industry, the upstream of wire and cable industry mainly includes copper, aluminum, rubber, insulating plastic and other auxiliary materials, while the downstream industries of wire and cable industry cover a wide range, including power, power generation, communication Railway, petrochemical, mining, shipbuilding and other important areas of the national economy, whose demand is greatly affected by macroeconomic conditions, belong to the pro cyclical industry

wire and cable industry is a typical material heavy industry light industry. Among raw materials, copper and aluminum are the most important basic materials, accounting for more than 70% of the cost of wire and cable. From the perspective of China's copper output in, China's copper output increased year by year. In 2016, the copper output reached 20.96 million tons, but in recent years, the copper output fell. In 2018, the copper output fell to 17.16 million tons. The copper price fluctuated due to this, and the fluctuation of raw material price will also affect the downstream power cable market

IV. production situation of China's power cable industry

from the production situation of China's power cable in, the output of power cable showed a rapid growth trend from 2011 to 2014, reaching a maximum output of 56.7783 million kilometers in 2016. Since then, the output of power cable began to show a downward trend, mainly due to the impact of upstream raw material price fluctuations, the impact on the gross profit margin of the industry was more obvious, and the output of power cable fell to 49.336 million kilometers in 2017, In 2018, the output of wires and cables in China was 45.3207 million kilometers

although China is a large cable manufacturing country, the industrial concentration is not enough, the industry is large but not strong, and it is difficult to fully participate in global competition. Few enterprises are involved in high-value-added products in the industrial chain, such as aerospace, submarines, nuclear power, military industry, electronics, automotive wiring harnesses, high-voltage cable accessories, high-voltage cable ultra clean cable materials and other high-end products and raw materials mainly rely on imports. Due to the lack of high-end R & D and innovation capacity, domestic wire and cable products are highly homogeneous, and low prices have become the main means of competition in the market. There is serious overcapacity in some middle and low-end product areas