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The Present Situation of China Cable Industry

China's wire and cable industry in the national economy occupies a very important position in recent years, production and sales continue to grow. In the international arena after the United States is the world's second-largest wire and cable producer. But recent years .Although China's wire and cable industry will usher in new opportunities for development, but it also faces serious challenges. Should be positive forward-looking thinking, planning for the future, especially to strengthen the industry, to prevent vicious competition, thereby promoting the sustained, rapid development of industry-wide.

The present situation
China's economy continued rapid growth as well as wire and cable industry provides a huge market space. The strong temptation to make the world's attention focused on the Chinese market. The fierce competition, increasingly thick smell of gunpowder. Who will be the winner.China optical cable manufacturing fate have aroused widespread concern in the industry.

Relevant information, wire and cable is the national economic departments indispensable accessory products and the transmission of information, which transportation and manufacturing all kinds of electrical power, electrical, instrumentation equipment, the indispensable foundation. Almost from the EHV transmission lines to a variety of micro-motor can not be separated in all aspects of wire and cable.

Sustained rapid economic development, optical cable industry in the capital, technology, talent and other production factors have created favorable conditions for accumulation. Through years of a large number of equipment and technology introduction, digestion and absorption, as well as independent research and development, initially formed optical cable manufacturing a full range of manufacturing systems. In the field of low-end products has formed a huge production capacity. Electro-optical cable with supporting materials, equipment manufacturing industry has also formed a more complete package system.

In recent years, optical cable industry through continuous investment in transformation, rapid increase in production efficiency and accelerate the upgrading of the product, the product structure is becoming more rational. Industry capital structure is becoming more diversified, market-oriented process has accelerated noticeably. Through inter-firm mergers, acquisitions and other restructuring of the operational, activated reserve assets. With the new prototype of the show cable giant, to a certain extent, improved the status of the low degree of industry concentration.

Faced a lot of pressure
As the electric power, telecommunications and other industries strong demand to stimulate the wire and cable industry of major economic indicators continued to grow, but at the same time. wire and cable industry is facing unprecedented difficulties and pressure.

In the wake of the external environment changes and market competition more vehemently, the world's wire and cable industry has formed the pattern of several giant monopolies; another pressure . the main raw material price of copper rose sharply, leading to tight money supply wire and cable businesses, cash flow is slow. Particularly foreign specialty cable products to enter the Chinese market has aggravated the bitter competition, some companies have faced a new crisis.

It is understood that, at present, China's small and medium wire and cable companies have reached over 7,000. Due to lack of research and development capabilities of these enterprises, most enterprises in the low-end products make a fuss.Thus, price competition has become a magic weapon numerous SMEs. As the wire and cable materials is a typical heavy industry,, the prices of raw materials accounted for 70% of the total cost of 80%. Therefore, the pros and cons of raw materials has greatly affected the quality of wire and cable products. The reason why small businesses can provide ultra-low-cost products, is nothing more than make a fuss about the raw materials, product quality can imagine that in a period of nearly continuous high copper consolidation trend, some companies have emerged the phenomenon of shoddy .

Experts point out: Although a substantial price increases of raw materials is difficult for many companies, but also provides a unique opportunity for wire and cable industry shuffling . At present, the cable industry has undergone significant change in the pattern, many small businesses were forced to have collapsed. the shortcomings of state-owned enterprises system and the heavy historical burden gradually take a back seat now, private enterprises have become the protagonist of wire and cable industry.

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