16
Jul
Current status of China's wire and cable industry development: market demand is improving, and industry concentration is steadily increasing
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As one of the largest supporting industries in the national economy, the wire and cable manufacturing industry is the guarantee for the normal operation of the modern economy and society. In order to regulate and support the development of the industry, relevant state departments have successively issued a series of relevant policies to provide a good policy environment for the industry. The industry has also gradually upgraded and replaced with the continuous adjustment of national industrial policies, from low-end to medium- and high-end.
The upstream of the wire and cable industry industry chain is the raw material supply link, mainly including raw materials such as copper, aluminum, rubber, and plastic; the midstream is the wire and cable production and supply link, and the main products include bare wires, power cables, cables for electrical equipment, winding groups, communication cables and optical fibers; the downstream is widely used in power, communications, rail transit, construction engineering, engineering machinery, new energy and other fields.
Wires and cables are mainly composed of conductor cores, insulation layers and sheaths. Among them, the conductor core is mainly composed of copper and aluminum. Copper and aluminum raw materials account for the largest proportion of the raw materials required for wire and cable products, accounting for more than 70% of the cost of wires and cables. my country is the world's second largest copper producer and the largest producer of primary aluminum, with sufficient market supply. According to data, my country's copper production in 2022 was 22.865 million tons, a year-on-year increase of 7.7%; aluminum production was 62.216 million tons, a year-on-year increase of 1.9%.
In recent years, with the steady growth of the domestic economy, the continuous advancement of industrialization and urbanization, the continuous implementation of the "Belt and Road" initiative, and the macro policies such as "filling in the gaps, strengthening weaknesses, optimizing layout, and improving quality" to ensure the continuous investment in urban infrastructure construction, it has driven the rapid development of industries such as electricity, petroleum, chemical industry, urban rail transit, automobiles, construction, new energy, and ships. In particular, the investment in the construction of intelligent transmission and distribution networks and ultra-high voltage grids has continued to increase, promoting the efficient development of my country's wire and cable industry. Today, the wire and cable industry has become the second largest supporting industry in my country's national economy, with a scale of more than one trillion yuan. According to data, my country's wire and cable production in 2022 was about 59.27 million kilometers, a year-on-year increase of 8.2%; the industry market size was about 1.2166 trillion yuan, a year-on-year increase of 9.1%. Among them, power cable is the most widely used and largest market segment, accounting for about 39%, followed by cables for electrical equipment, accounting for about 22%.
From the perspective of industry imports and exports, my country's wires and cables are mainly based on export trade. With the development of my country's wire and cable industry in recent years, the overall export scale of my country's wire and cable industry has shown a fluctuating growth trend. According to data, my country's wire and cable imports in 2022 were 186,800 tons, a year-on-year decrease of 14.1%, and the import value was US$5.423 billion, a year-on-year decrease of 4.9%; the export volume was 2.2652 million tons, a year-on-year decrease of 3.3%, and the export value was US$25.3 billion, a year-on-year increase of 4.6%. From the perspective of export distribution, in 2022, the top three regions in my country's wire and cable exports were the United States, Vietnam and Australia, accounting for 13.8%, 5.4% and 5.2% respectively.
The market demand situation is good. Wires and cables, as a large category of electrical products indispensable for realizing electromagnetic energy conversion, are important basic supporting industries in the electrification and information society. They are called the "blood vessels" and "nerves" of the national economy and are closely related to the development of the national economy. With the steady growth of the domestic economy, the continuous advancement of industrialization and urbanization, and the macro policies such as "filling in the gaps, strengthening weaknesses, optimizing layout, and improving quality" to ensure continuous investment in urban infrastructure construction, it has driven the rapid development of industries such as electricity, petroleum, chemical industry, urban rail transit, automobiles, construction, new energy, and ships. In particular, the investment in the construction of intelligent transmission and distribution networks and ultra-high voltage grids has continued to increase, driving the continued growth of demand in the wire and cable industry.
The upstream of the wire and cable industry industry chain is the raw material supply link, mainly including raw materials such as copper, aluminum, rubber, and plastic; the midstream is the wire and cable production and supply link, and the main products include bare wires, power cables, cables for electrical equipment, winding groups, communication cables and optical fibers; the downstream is widely used in power, communications, rail transit, construction engineering, engineering machinery, new energy and other fields.
Wires and cables are mainly composed of conductor cores, insulation layers and sheaths. Among them, the conductor core is mainly composed of copper and aluminum. Copper and aluminum raw materials account for the largest proportion of the raw materials required for wire and cable products, accounting for more than 70% of the cost of wires and cables. my country is the world's second largest copper producer and the largest producer of primary aluminum, with sufficient market supply. According to data, my country's copper production in 2022 was 22.865 million tons, a year-on-year increase of 7.7%; aluminum production was 62.216 million tons, a year-on-year increase of 1.9%.
In recent years, with the steady growth of the domestic economy, the continuous advancement of industrialization and urbanization, the continuous implementation of the "Belt and Road" initiative, and the macro policies such as "filling in the gaps, strengthening weaknesses, optimizing layout, and improving quality" to ensure the continuous investment in urban infrastructure construction, it has driven the rapid development of industries such as electricity, petroleum, chemical industry, urban rail transit, automobiles, construction, new energy, and ships. In particular, the investment in the construction of intelligent transmission and distribution networks and ultra-high voltage grids has continued to increase, promoting the efficient development of my country's wire and cable industry. Today, the wire and cable industry has become the second largest supporting industry in my country's national economy, with a scale of more than one trillion yuan. According to data, my country's wire and cable production in 2022 was about 59.27 million kilometers, a year-on-year increase of 8.2%; the industry market size was about 1.2166 trillion yuan, a year-on-year increase of 9.1%. Among them, power cable is the most widely used and largest market segment, accounting for about 39%, followed by cables for electrical equipment, accounting for about 22%.
From the perspective of industry imports and exports, my country's wires and cables are mainly based on export trade. With the development of my country's wire and cable industry in recent years, the overall export scale of my country's wire and cable industry has shown a fluctuating growth trend. According to data, my country's wire and cable imports in 2022 were 186,800 tons, a year-on-year decrease of 14.1%, and the import value was US$5.423 billion, a year-on-year decrease of 4.9%; the export volume was 2.2652 million tons, a year-on-year decrease of 3.3%, and the export value was US$25.3 billion, a year-on-year increase of 4.6%. From the perspective of export distribution, in 2022, the top three regions in my country's wire and cable exports were the United States, Vietnam and Australia, accounting for 13.8%, 5.4% and 5.2% respectively.
The market demand situation is good. Wires and cables, as a large category of electrical products indispensable for realizing electromagnetic energy conversion, are important basic supporting industries in the electrification and information society. They are called the "blood vessels" and "nerves" of the national economy and are closely related to the development of the national economy. With the steady growth of the domestic economy, the continuous advancement of industrialization and urbanization, and the macro policies such as "filling in the gaps, strengthening weaknesses, optimizing layout, and improving quality" to ensure continuous investment in urban infrastructure construction, it has driven the rapid development of industries such as electricity, petroleum, chemical industry, urban rail transit, automobiles, construction, new energy, and ships. In particular, the investment in the construction of intelligent transmission and distribution networks and ultra-high voltage grids has continued to increase, driving the continued growth of demand in the wire and cable industry.
