Although the wire and cable industry is only a supporting industry, it accounts for 1 / 4 of the output value of China’s electrical industry. It has many kinds of products and a wide range of applications, involving power, construction, communication, manufacturing and other industries, which are closely related to all sectors of the national economy. Wires and cables are also called “arteries” and “nerves” of the national economy. They are indispensable basic equipment for the transmission of electric energy, the transmission of information, the manufacture of various motors, instruments and meters, and the realization of electromagnetic energy conversion. They are also necessary basic products in the future electrification and information society.
About one belt, one road for wires and cables
The summit of one belt, one road, has just come to a close and has achieved over 270 achievements. These achievements will inject new vitality into our economy in the future. Copper prices, which rebounded strongly for more than a year, began to decline again. The trend of copper price can explain the prosperity of wire and cable industry to a large extent. According to the financial statements of several large cable listed companies in the first quarter of 2017, the net profit of Far East Cable decreased by 86%, that of Zhongchao cable decreased by 12%, that of solar cable decreased by 48%, and that of long-distance cable decreased by 35%. The weaker demand, together with the increasingly fierce competition, led to the declining net profit of major cable manufacturers. If we do not expand new markets, the whole industry will face greater competitive pressure.
One belt, one road, has 65 countries, covering almost all Asia and central and Eastern Europe. Among them, there are 18 countries in West Asia, 8 in South Asia, 5 in Central Asia, 10 in ASEAN, 7 in cis and 16 in central and Eastern Europe. Most of the countries are developing countries, with vast territory. The demand for infrastructure such as railway, highway, power grid and so on is huge, which will be a great opportunity for the whole cable industry. For these 65 countries, each country has different requirements for cables, and it is almost impossible for a product to meet the requirements of these countries. But there is a kind of certification that can meet the requirements of these countries for cables to the maximum extent. This certification is CB certification, which is the standard dominated by IEC.
Wire and cable is second largest industry in China
The wire and cable industry is the second largest industry in China after the automobile industry, with the product variety satisfaction rate and domestic market share over 90%. In the world, the total output value of China’s wires and cables has exceeded that of the United States, becoming the world’s largest producer of wires and cables. With the rapid development of China’s wire and cable industry, the number of new enterprises continues to rise, and the overall technical level of the industry has been greatly improved. Let us take a look at the specific countries where China’s wires and cables are exported.
Top 10 countries for wire and cable
In 2019, 205 countries / regions in the world purchased cables from China, with a total purchase amount of 13.9 billion yuan, of which Australia is the largest market, accounting for 12.02%, 1.67 billion yuan, Singapore 6.8% and Indonesia 6.8%.