Quotes of the wire and cable industry
- Categories:Industry News
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- Time of issue:2016-09-19 16:17
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(Summary description)Due to the strong demand in the power, communications and other industries, the main economic indicators of the wire and cable industry have continued to grow. At the same time, the wire and cable industry is facing unprecedented difficulties and pressures.
Quotes of the wire and cable industry
(Summary description)Due to the strong demand in the power, communications and other industries, the main economic indicators of the wire and cable industry have continued to grow. At the same time, the wire and cable industry is facing unprecedented difficulties and pressures.
- Categories:Industry News
- Author:
- Origin:
- Time of issue:2016-09-19 16:17
- Views:
Due to the strong demand in the power, communications and other industries, the main economic indicators of the wire and cable industry have continued to grow. At the same time, the wire and cable industry is facing unprecedented difficulties and pressures.
First, with the changes in the external environment and the influence of market competition, the world's wire and cable industry has formed a monopoly by several giants;
Second, the price of copper, the main raw material, has risen sharply, causing wire and cable companies to tighten money and slow capital turnover. In particular, the entry of foreign special cable products into the Chinese market has aggravated the fierce competition, and some companies are already facing a crisis of survival.
It is understood that at present, there are more than 7,000 small and medium-sized wire and cable companies in my country. Due to the lack of R&D capabilities of these companies, most companies make fuss about low-end products. Therefore, product prices have become a magic weapon for many small and medium-sized enterprises to compete. Since wire and cable is a typical industry with heavy materials and light industry, the price of raw materials accounts for 70% to 80% of the total cost. Therefore, the quality of raw materials affects the quality of wire and cable products to a large extent. The reason why small companies can provide ultra-low-priced products is nothing more than a fuss about the raw materials. The quality of the products can be imagined. In the recent period of continuous high copper prices, some companies have appeared inferior.
Experts pointed out: Although the sharp increase in the price of raw materials has made many companies difficult, it also provides an excellent opportunity for the reshuffle of the wire and cable industry. At present, the pattern of the cable industry has undergone significant changes, and many small companies have been forced to discontinue. State-owned enterprises have gradually retreated to the second line due to system shortcomings and excessive historical burdens. Private enterprises have become the protagonist of the wire and cable industry.
The market is optimistic about integration soon
In recent years, my country has built tens of millions of kilometers of national power and communication networks, extending from the central metropolis to remote mountain villages. Therefore, the demand for cables is huge. Experts pointed out that the rapid development in recent years has made the production capacity of my country's wire and cable industry far higher than demand, and the equipment utilization rate is only 30% to 40%. In the future, the main task of the wire and cable industry is mergers and reorganizations.
At present, repeated investment and blindly following the trend of the wire and cable industry are very serious. For example, during the transformation of urban and rural power grids, many companies produce overhead conductors and cross-linked cables; when focusing on the development of high-tech products, many companies vigorously produce high-voltage cross-linked power cables And optical cables; now many companies are flocking to automotive cables. These rushes, regardless of conditions, have resulted in oversupply of some products and increasingly fierce market competition.
Similar to the situation of oversupply in the Chinese market, the cable industry around the world is also facing difficulties. Especially after the IT bubble burst, some large European groups began to throw out the wire and cable business. Therefore, for countries around the world, including Chinese companies, one is to adapt to environmental changes through mergers and integration, and the other is to make efforts to develop through technological development. Only products that meet future needs can turn challenges into opportunities.
In the next few years, there will be good market demand for new network construction and old network reconstruction, but a good market does not mean that the life of enterprises will be better. Only those companies that keep pace with the times and always maintain innovative capabilities can win the market and achieve rapid development.
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