Market Watch: Demand for Communication Cables Soars

It is understood that carbon fiber belongs to the new material technology. It will be used in transmission and communication towers, bicycle industry, and automobiles because of its excellent physical and chemical properties such as light weight, high strength, strong flexibility, fatigue, high temperature resistance, and corrosion resistance. Industry, aerospace and other industries have a wide range of application prospects. Carbon fiber and other new material technologies, together with nanotechnology and biotechnology, are known as the leading force in the 21st century to promote the human technological revolution. Its application on the transmission line will cause a revolutionary change.

China is a country that lacks electricity. Not only the power generation industry lags behind, but also the drawbacks of the transmission industry are highlighted. Transmission lines have been unable to withstand the rapid expansion of transmission capacity. Power outages and outages due to overload have occurred frequently, and power transmission has become a power source. The "bottleneck" of industrial development, all countries are studying new overhead transmission lines to replace the traditional steel-cored aluminum stranded wire. Carbon fiber composite core wire and steel core aluminum stranded wire, in addition to the aforementioned advantages, but also increase the transmission capacity of 1 times, reducing the loss of power transmission, reduce the tower rod by 20%, save land, reduce non-ferrous metal resources Consumption will help build a safe, environmentally friendly, energy efficient transmission network. At present, only the United States and Japan have developed this new type of wire. They have also reached a tacit agreement that they do not export to third countries. The output of a Japanese carbon fiber wire company accounts for about 40% of the world's total. Jiangsu Far East Group can successfully cooperate with the United States, introduce this new type of cable into Chinese production, and establish a production base with annual sales of RMB 2 billion. This is naturally a remarkable thing for the cable industry.

Since the reform and opening up, China’s wire and cable companies have grown from the fixed-point factories in 123 countries to more than 7,000 in the past. Among the 7,000 or more factories, some factories have failed bankruptcy and transfer of production after being tested by the market economy. Basically, they are still doing well. That is thanks to the rapid development of the domestic power industry and the communications industry. In recent years, China has built a national power and communications network with tens of millions of kilometers in length, extending from the center metropolis to a remote mountain village, and the demand for cables. It is huge. However, like other industries, large demand must lead to a surge, and then the surplus, the mighty domestic wire and cable industry, has now reached the integrated level. Many experts pointed out that the rapid development in recent years has made China's wire and cable industry far exceed the demand for production capacity, and the utilization rate of equipment is only 40%-50%. Mergers and reorganizations will become the main topic of future wire and cable industry.

It is understood that the rapid expansion of the national power network and communication network has led to a surge in demand for power cables and communication cables in recent years. As far as telecommunication cables were concerned, in the early 1990s, the demand for optical fibers in China was only tens of thousands of kilometer core kilometers, and in 2001 it reached 12 million core kilometers. However, this growth has also led to a large number of companies working side by side. The current domestic fiber production capacity has reached 35-50 million core kilometers. Although the market demand for communications cable is still growing, it is expected that from this year onwards, the growth rate will drop from about 50% in the previous two years to about 15%, and a large number of fiber-optic manufacturers will “have no rice”. With the oversupply of the Chinese market, at present, the cable industry in the world is also facing difficulties. In particular, after the burst of the IT bubble, some European large groups also started to throw out the wire and cable business. Therefore, for all countries in the world, including Chinese companies, one must adapt to environmental changes through mergers and acquisitions. Second, through technology development and innovation, efforts should be made to develop products that meet future needs in order to weather the difficulties and turn challenges into opportunities. In China, the cable market is still “good for the landscape” and there is a lot to be done. Due to the construction of new networks and the transformation of old networks, the demand will remain strong for quite a long time. But as economists have said, a good market is not It means that the days of business will be better, and the survival of the fittest will be the only chance for companies that can keep up with the times and maintain their ability to innovate.

The market potential of urban rail transit and cable high-end products is conspicuous with the rapid development of China's economy, the speeding up of urban modernization, and the continuous expansion of the city's scale, and the resulting traffic problems will continue to emerge. At present, urban rail transit has become an effective measure to resolve urban transport problems in some developed countries and regions. Therefore, in China's big cities, the development and construction of a rapid rail transit system network will become an upsurge. It is understood that at present, there are more than a dozen cities in China that are currently building rail transit. Beijing, Shanghai, Guangzhou, and Tianjin are all continuing to expand. Nanjing, Changchun, Shenzhen, Chongqing, Chengdu, Hangzhou, and Wuhan are all under construction. The rapid development of urban rail transit will breed unlimited business opportunities, which will also bring new market opportunities for domestic wire and cable companies. Among them, the power cables will mainly be special cables such as DC traction cables, flame-retardant cables, fire-resistant cables, green environmental protection cables, and self-control temperature cables. The signal cables are mainly concentrated in the signal cables and control cables used in subways, railways, communication cables, and telecommunication cables.

The cable high-end product market is highlighted by mainly high-tech marine cables, rolling stock cables, aerospace cables and nuclear power station cables. The 11th Five-Year Plan of the State has made clear plans for the development of shipbuilding, railways, aircraft, aerospace and nuclear power, and it requires that the types and quantities of cables are generally at the bottom. The emergence of markets in the above mentioned areas will soon lead to cable product heat. At the same time, for wire and cable companies to expand their living space, they will find a way to bring about the development of the wire and cable industry.