Cable industry or enter the period of readjustment

Since China's wire and cable industry has a low level of entry, it will enter a period of readjustment in the next few years under the influence of changes in the industry or under relevant policies and market conditions.

China's wire and cable market has more than 7,000 manufacturing companies, mainly in Guangdong, Jiangsu, Hebei, Anhui, Henan, Chongqing and Shandong. In recent years, with the bottleneck of energy and power shortages in economic development, China has continuously increased its investment in electricity, making the wire and cable industry enter a period of rapid development. However, due to the huge output value and profit of the industry, and more than 90% of domestic cable companies' production capacity is concentrated in low-end products, a large number of small enterprises have entered the industry. Many small businesses have even taken the risk, shoddy, resulting in only about one-third of the product pass rate in this industry.

At the same time, China's wire and cable industry has low concentration and low barriers to entry. Although many small businesses enter this industry, many of them will be eliminated in the future competition because this industry is an industry that depends on quality.

At present, the concept of environmental protection is vigorously promoted around the world. The importance of environmental protection is increasingly valued by all countries. The conventional wire and cable uses PVC, which generates dioxin when it is disposed of after being discarded, and causes problems such as the toxicity of lead compounds during burying. Therefore, the market needs environmentally friendly cables that are safer and less polluting. Europe, the United States, and Japan attach great importance to the hazards associated with cable. The government not only strictly limits emissions from the cable manufacturing process, but also conducts comprehensive monitoring of the disposal of scrapped cables, forcing cable manufacturers to use materials that meet environmental requirements. Replace traditional materials, manufacture environmentally friendly cables or so-called "clean cables." Developed countries such as Europe and the United States are vigorously promoting the use of environmentally-friendly cables. China has also accelerated the promotion and use of environmentally-friendly cables. For example, Beijing and Shanghai have stipulated that they must use environmentally friendly cables within their jurisdiction.

Therefore, with the improvement of our country's access system in the wire and cable industry, and the introduction of policies to eliminate backward production capacity, wire and cable companies will be eliminated one after another.