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Wire And Cable Industry Has A Huge Market Space In The Future National Development
- Jun 23, 2018 -

The wire and cable manufacturing industry has the characteristics of light weight and heavy weight. Due to the high unit price of raw materials, copper and aluminum, and the rapid price fluctuations, the high inventory level on the one hand will occupy a large amount of funds for the company. On the other hand, the product sales price will also follow the raw materials. The fluctuation of prices has been greatly affected, and there is a risk that inventory will fall sharply. Among them, urbanization and industrialization are long-term driving factors for the rapid growth of the wire and cable industry. In the past few years, our country has experienced the period of urban infrastructure construction and the rapid development of the national economy, and the wire and cable industry has also developed rapidly.

    At present, there is still a big gap between the urbanization rate and the industrialization rate in China compared with Western developed countries. It is expected that the urbanization and industrialization will continue to advance in the next 30 years, which will bring long-term rigid demand to the wire and cable industry. The continuous development and growth of the industry. If we can follow the development trend of the market economy and gradually eliminate the institutional factors and other obstacles that hinder the development of urbanization, by 2030, China’s urbanization rate should be able to reach the level of 65%. With the steady increase in the level of urbanization, the demand for urban construction for transmission and distribution cable and cable and rail transportation will continue to grow.

   During the “Twelfth Five-Year Plan” period, with the country’s heavy investments in power grid construction and power supply construction, it brought greater market opportunities to power cable and overhead conductor manufacturing industries. The State Grid has made great efforts to strengthen the construction of the power grid, matching the development speed of the power grid with the power demand and installed capacity, and basically meeting the requirements of economic and social development. As the most important supporting industry in power grid construction, the market development of power cables and overhead conductors will follow the “12th Five-Year Plan” and “13th Five-Year Plan” smart grid planning, upgrading of power transmission and transformation equipment, and construction of UHV transmission lines. The promotion of such a new ushered in a period of rapid development.

    As an important national infrastructure, railway has an important strategic position in China's transportation system. According to the "13th Five-Year Plan for Railway Development" (Draft for Soliciting Opinions), the State Railway Administration of China stated that from 2016 to 2020, the scale of investment in railway fixed assets may reach 3.5 trillion - 3.8 trillion yuan, of which the capital construction investment will 3 trillion yuan to build a new line of 30,000 kilometers. By 2020, the country’s railway mileage will reach 150,000 kilometers, including 30,000 kilometers of high-speed railways.

    By the end of 2015, the country’s railway business mileage has exceeded 120,000 kilometers, ranking second in the world, including 19,000 kilometers of high-speed railways, accounting for more than 60% of the world's total high-speed railway mileage. In 2016, the country's newly built railways will have a production mileage of 3,281 kilometers, including 1,903 kilometers of high-speed railways. At the same time, China is planning to build a total length of about 15,000 kilometers of the “Trans-Asian Railway Network”. The increase in railway investment is bound to increase the demand for rail transit vehicles and railway signal cables.

    The upper reaches of the wire and cable industry are raw materials and equipment suppliers, and the main raw materials are copper, aluminum, insulated plastics, rubber and other accessories. Wire and cable industry is a typical "light heavy industry" industry, copper and aluminum are the most important basic materials, accounting for about 80% to 90% of the cost of wire and cable. The downstream industries of the wire and cable industry are important national economic fields such as power, communications, railways, petrochemicals, mining, and shipping. As an indispensable supporting industry in the national economy, the wire and cable industry is greatly influenced by the development of these downstream industries. In the future, China will invest large amounts in these industries, bringing a huge market space for the wire and cable industry.