The Main Features Of The Current International Wire And Cable Industry

- Jul 24, 2018-

1. Asia has become the world's first concentrated area for wire and cable.

Looking at the overall size of the global wire and cable industry, the Asian market accounts for 37%, the European market is close to 30%, the Americas market accounts for 24%, and other markets account for 9%. According to copper conductor production and country classification, China, the United States, Japan, Germany, and South Korea occupy the top five positions in the world (among them, China, Japan, and South Korea are Asian countries). China's production accounts for 30.5% of the global share, of which mainland’s production accounts for 27.6%, and its annual growth rate ranks first in all countries and regions around the world.

2. High concentration of industries in developed countries.

After years of development in the wire and cable industry in developed countries, especially in facing the fluctuations in raw material prices, small enterprises have gradually withdrawn from the market, and industrial concentration has increased significantly. Four US manufacturers have controlled the output values which are 93% of copper cable and 85% of fiber optic cable; Seven major companies in Japan accounted for 86% of its national sales; 12 British companies accounted for more than 95% of national sales; Five largest companies in France have swept the turnover of the French market; The European market is dominated by the Italian Prysmian company and the French Nexans company.

3. Europe continues to maintain competitive advantage.

Regionally, Europe has been a leader in the global cable manufacturing industry, mainly because the large investment of product development are in Nexans, BICC and Prysmian company; on the other hand, 70% of the production cost of wire and cable depends on raw materials, and labor costs are less than 10%. Therefore, the labor cost advantage in Asia is not fully reflected in the global wire and cable industry competition.

4. The global cable market is maturing and the growth rate becomes slow.

In terms of market supply and demand, the global wire and cable market are maturing and the growth rate becomes slow. The tracking analysis of the development of wire and cable industry from both domestic and international shows that as long as the economy of a certain country or region is growing, especially in the process of industrialization and urbanization, the country's wire and cable industry growth will be above GDP growth. China's per capita GDP level is far lower than that of developed countries. The per capita cable consumption level is much lower than that of European medium-developed countries and even lower than Latin America and other developing countries. The market potential of China's wire and cable consumption still has a lot of room for development.

5. Environmental protection has become the development trend of global wire and cable products.

In terms of products, environmental protection has become the external pressure and development trend faced by global cable manufacturers in recent years. The United States, Japan, and Europe are world leaders in the development and manufacture of environmentally friendly cables, and their production technologies are relatively mature.