Overview of wire and cable industry development in China in recent years
Wire and cable, as one of the largest supporting industries in the national economy, is the foundation of various industries, and its products are widely used in electric power, construction, civil, communications, shipping, military, aviation and petrochemical fields. Wire and cable according to use can be divided into power cables, electrical equipment, winding wire, bare wire and cable, communication cable and wire and cable accessories, wire and cable industry in China in 2017 the size of the market segment of the situation, power cable occupies the largest part in the wire and cable business, the scale accounted for 35.7%, followed by electrical equipment cable, winding line, accounted for 20% and respectively 15.7%.
I. Development status of wire and cable industry in China 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, 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, including sales revenue innovation in 2016 as high as 1,392.4 billion yuan, sales revenue of wire and cable in 2017 decreased slightly, 1,351.3 billion yuan. Along with the increase of infrastructure spending, as well as new energy, military industry, ocean engineering, rail transportation, ultra-high voltage, further implementation of the smart grid development, is a growing demand for wire and cable, especially in the high-end equipment with cables, future wire and cable industry in China will further increase the sales revenue.
Ii. Development of global power cable industry
Power cables as the wire and cable business accounted for the largest part of the, the industry has been developing rapidly in recent years, from the point of the global market, from 2012 to 2017, the power cable industry market scale increases year by year, while in 2015 after the market scale growth fell, but overall is still the same growth, global power cable industry market size in 2017 for $207.3 billion Yuan, up 7.9% year on year in 2017.
According to the market structure distribution of global power cable industry in 2017, Asia accounts for 39%, followed by Europe and America, accounting for 27% and 25% respectively, and other regions only account for 9%. With the acceleration of economic development in Asia and other emerging countries in recent years, the global power cable production has gradually shifted to Asia, and 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, power cable industry chain structure and the structure is basically the same, wire and cable industry chain from the perspective of the industrial structure of China's wire and cable industry, wire and cable industry upstream mainly include copper, aluminum, rubber, plastic insulation, and other accessories, wire and cable industry in the downstream industry has a wide range, including electricity, electricity, communication, railway, Petrochemical, mining, shipbuilding and other important national economic fields, whose demand is greatly affected by the macroeconomic conditions, are pro-cyclical industries.
Wire and cable industry is a typical "heavy material light" industry, among the 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 production from 2011 to 2018, China's copper production increased year by year from 2011 to 2016, copper production reached 20.96 million tons in 2016, but copper production declined in recent years, copper production declined to 17.16 million tons in 2018, copper price fluctuations affected by this, raw material price fluctuations will also affect the downstream power Cable market.
Fourth, China's power cable industry production situation
From the perspective of China's power cable production from 2011 to 2018, the output of power cable showed a trend of rapid growth from 2011 to 2014, and reached the highest output of 56.7783 million km 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, which had a relatively large impact on the gross profit margin of the industry Obviously, in 2017, the output of power cable decreased to 49.336 million km, and in 2018, China's output of wire and cable was 45.32700 million km.
Although is cable manufacturer in China, but industrial concentration is not enough, industry is big but not strong, difficult to fully participate in global competition, few enterprises involved in the industry chain and high value-added products, such as aerospace, submarines, nuclear power, military industry, electronics, automotive wiring harness, high voltage cable accessory, high voltage cable net cable materials and other high-end products and raw materials mainly rely on imports. Due to the lack of high-end research and innovation ability, the domestic wire and cable products are highly homogeneous, low price has become the main means of competition in the market, and some low-end products have serious overcapacity.