Wire and cable industry faces "merger integration"

Wire and cable industry faces "merger integration" In the wire and cable manufacturing industry in China, there are serious problems in the homogenization of enterprises, low concentration of the industry as a whole, and low technical content of products. In the current severe situation of China's wire and cable industry, "merger integration" has gradually been recognized by the industry.

The overall concentration of China's cable industry is not high. According to statistics, the five domestic cable companies headed by Far East Cable accounted for less than 10% of the national cable market share. In contrast, the top five cable companies in France accounted for 90% of the country’s market. The top 10 cable companies in the United States accounted for 67% of the country's market. The first seven cable companies in Japan have taken up 86% of the country's market share. The world’s 1/4 wire and cable market has been dominated by eight wire and cable giants such as Prysmian, Nexans, and U.S. General Cable.

In the low-end market, the price war has become the main means of competition and it has become increasingly fierce. The vicious price competition has caused the overall price of the wire and cable manufacturing industry to decline, and the industry's profit rate has declined. A large number of wire and cable manufacturers have struggled to close down. As China's economic growth slowed down this year and faced a critical moment of transformation and upgrading, the government did not take excessively irritating measures, which also caused the cable demand to be difficult to open up.

Nowadays, there are two problems in the domestic cable industry. On the one hand, there is excess capacity in the market, and although all industries and industries have ushered in new development and great development, due to macro-control, there is no special performance in the power grid, real estate and infrastructure. The total demand has steadily declined. On the other hand, although the cable market demand has opened up, there are very few local companies that can support such a large market. Except for a few large-scale enterprises, domestic cable companies almost always take the route of low quality and small brands, and can only compete in the low-end market for a long time, and they are often weak for high-end market projects.

Domestic cable technology upgrades and product innovation capabilities are insufficient. The vast majority of production companies tend to focus only on short-term money, thus causing the high-end market to fall. In addition, the cable industry is an industry that weighs light and light industries. With the price of copper and various raw materials in the market rising sharply, the bidding prices for wires and cables are both transparent and relatively low. Enterprises are produced in accordance with industry standards and national standards, and the process is strictly enforced. It is imperative to make substantial losses, so the current domestic cable industry is immersed in the quagmire of low-price competition and the quality of products is worrying.

Some enterprises have produced a large number of unqualified and counterfeit products in order to obtain profits or obtain survival. The disorder in market competition is serious, which has caused a considerable negative impact on the reputation of China's wire and cable manufacturing industry. In the high-end market, such as special cables, ultra-high voltage cables, etc., only a few large-scale state-owned enterprises in China can compete with foreign-funded enterprises. This year, problems such as difficulty in financing, difficulties in repayment and investment losses have seriously plagued cable manufacturers. In particular, the bank’s monetary tightening and the domestic cable industry’s payment mechanism are unreasonable, and it is even more difficult for domestic cable manufacturers to make it difficult this year.

Although China's wire and cable manufacturing industry has made considerable progress, it is still at the low end of the industrial chain. Its low added value and weak international competitiveness make it vulnerable to fluctuations in the prices of foreign brands and raw materials. When the Prysmian Group, the Nexans Group, and the U.S. General Cable, which had just entered the Chinese market last year, came to "carve up" the domestic cable market, domestic companies lacked enough strength to fight back, and the relations between enterprises and the country The relationship between the two is similar. At present, there is a vicious competition among many cable companies in China, and the low degree of industry concentration is an important reason for this result.

The large and strong cable industry in China requires not only cable manufacturers but also advanced cable equipment. It is the basis for the wire and cable industry to survive and develop. The specialization of precision cable products and cable equipment is beneficial to the technical advancement and economic efficiency of the entire wire and cable industry, so as to enhance the competitiveness of China's wire and cable industry and increase its international influence. It will truly make China a major country from wire and cable to a strong country. .

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