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Forecast The Future Market Of China Wire And Cable

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20 since the 90′s, the cable industry known as the City “nervous” and “vessel”, shoulder pillar industries for the industries supporting the functions of the national economy, growth is second only to China’s machinery industry position Car The second largest industry. However, the output value of China’s cable industry, cable industry still accounts for only 15% of the world about this huge market and there are many gaps in the development of space, need to be improved. “Eleventh Five” period, in accordance with national economic growth rate of 7% to 8% increase calculated Wire & Cable Industry growth rate will be flat rate of development of national economy is expected to 8.5%. From a macro perspective, the whole of China Wire & Cable Industry is in rapid development growth.

F development is rapid, such problems have followed. Especially in relatively low added value and low-end wire and cable products in the market, prices down Competition of the situation is quite common. The industry believes that low-price competition resulting product is the root cause of blind investment and overcapacity, oversupply. On the one hand, because the investment threshold, resulting in the influx of a large number of enterprises, resulting in the industry of the enterprise “excessive.” Beyond the capacity of these industries demand, a serious surplus. On the other hand, as “threshold” is low, is not only becoming less and less concentrated industries, but also a part does not have the capacity, quality control and inspection and other necessary means “workshop enterprise” to blend into the industry, and has become fake, shoddy, shoddy work, shoddy products produced cable source, and with depression Sell Price means to disturb the market competition order, aggravated disorderly competition within the industry.

Present, China’s cable industry has seen more than two decades, progress has been made of the development, but still not out of the vicious circle is big but not strong, and world-class companies are still significant gaps compared. There is industry concentration is low, the number of large and small enterprises, economies of scale is not enough, a lack of innovation and product structural contradiction and so many problems. Despite these problems, but China’s cable industry is facing new opportunities for take-off, that rapid increase in development opportunities for its core competitiveness.

With the changing world economy, China’s cable industry is also bound to face re-shuffle. In particular, in recent years, confronting China’s economic development Energy , The bottleneck problem of power shortage, the state continued to increase investment in electricity, making the industry entered a period of rapid development. Increase for the implementation of the central infrastructure, making deployment of stimulating domestic demand, China Home Appliances Network companies planning to increase investment and accelerate the pace of grid construction, is expected to invest in the next 2 to 3 years, the scale would be more than 1 trillion yuan, of which the city and the rural network construction and reconstruction of the main grid investment 790 billion yuan. Scale of construction is 110 (66) 26 kV and above transmission lines thousands of meters, power transmission capacity of 1.35 billion kVA.

Power cable The transmission manufacturing industry, once their equipment industry, its technology was relatively low barriers to entry is low, the user is primarily a national grid company, this market structure led to a number of equipment suppliers some loss of pricing power, the industry expanded rapidly after facing the problem of raw materials prices, the industry increasingly competitive, profit decline presents; secondary transmission and distribution equipment industry is a cyclical industry is relatively small, it relates to high technology, technical barriers to high, from several large Company monopoly. In view of the development prospects of China’s electric power industry, wire and cable manufacturing industry as its sub-sectors, driven in large environment has a good space to develop.

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