China's special cable market has a monopoly of transnational giants

The market has been seized by multinational giants. With the maturing of the global wire and cable market in recent years, the wire and cable manufacturing industry has shown a slowing down of growth, with little growth. The changes in the external environment and the impact of internal competition have made the world wire and cable industry enter the pattern of several giant monopoly competitions. Almost at the same time as South Korea’s LS Group announced its entry into China, Nexans announced that it invested €2,200 to establish a new plant, Nexans (Shanghai) Cable Co., Ltd., marking that the world’s advanced special cables have been produced in China. Previously, the high-end cables needed in the Chinese market were almost all dependent on imports. Although there are more than 7,000 local manufacturers in China, almost all of them are concentrated in the low-end market to snatch the market at a low price. As the prices of raw materials such as copper and aluminum continue to climb in recent years, profits have been diluted, and companies have struggled to survive. In the new generation, this has become a bottleneck for the development of domestic companies. Currently in the field of high-grade special cables with large profit margins, the Chinese market has been completely seized by transnational giants.

The open acceptance attitude of China's wire and cable market for special cables has provided a way for domestic cable companies that have been engaged in low-end battles for a long time. It is like a spring breeze blowing and it has injected a pin for the “dangerous patient” in the Chinese wire and cable industry. cardiac.

According to statistics, at present, special cables account for about 30% of the total sales in China's cable market, which is about 40 billion yuan. The demand for special cable market is just like a huge and finely divided stage. It needs local companies to grasp, develop, and occupy. Anhui and Sichuan are building two major special cable production bases, which are widely used in power, nuclear power, shipbuilding, port machinery, locomotives and rolling stock, rail transportation, tunnel construction, mineral exploration and exploration, land-ocean oil engineering, aerospace and other fields. As a result, the development of high-grade special cables has broad prospects for development. This has brought new market opportunities for domestic optical cable companies with certain strengths. The industry looks forward to the emergence of a number of veritable high-tech wire and cable companies.

The differentiated optical cables in various commodity markets mainly include optical fiber cables, communication cables, electronic cables, and electronic wires. In recent years, China's optoelectronic cable industry has made rapid development. The scale of the industry has ranked first in the world, and the overall level of products has also reached the international advanced level. The optoelectronic cable industry is one of the industries with the most rapid industrial development and the most active research and development in the electronic component industry.

According to the statistics of the Electric Wire and Cable Branch of the China Electrical Appliance Industry Association, although there are many varieties of optical cables, the market is huge. However, in recent years, some product markets have shrunk and other product markets have rapidly expanded.

First, the RF cable market is highly concentrated. In recent years, RF (Radio Frequency) cables for mobile communications in China have been rapidly developed, and the market demand has increased by more than 30% annually. From the aspect of product quality, domestically produced RF cable product specifications have fully caught up with the level of similar foreign products as early as the end of the 20th century, and individual indicators are also slightly better than foreign products, fully satisfying the requirements of domestic users, being the majority User accepted. From the perspective of technological development, optical fiber remote technology is used in the construction of mobile communication networks and base stations, and photoelectric conversion is performed immediately after the antenna receives signals, and the signal is transmitted to the ground with a soft optical cable assembly, that is, a wrinkled conductor cable has appeared. Update product. Experts estimate that the current growth trend of RF cables can be maintained for 2 to 3 years, and soft fiber cable components will replace a portion of the market. Therefore, companies investing in communications RF cables should be careful.

Second, the communications cable market has shrunk. The communications cable market has dropped significantly. Since most local telephone cables are replaced by fiber optic cable, the demand is almost zero, and the number of cables required for each additional telephone user is also declining. It is estimated that the decline has reached more than 50%. It is obvious that the number of fixed-line subscribers in our country has grown negatively for many years.

Third, data cable technology upgrades quickly. The data cable market continues to expand, and many companies have adapted the serial lines originally used for the production of communication cables to suit the requirements of data cable manufacturing. Large companies producing communication cables are also equipped with advanced data cable production lines, reflecting the degree of activity in this market. Data cables mainly include five types of lines, six types of lines, enhanced type five lines, six types of lines, and seven types of lines. Unshielded products include shielded products and jumper cables.

Fourth, television cables must improve product quality. TV cable is a large quantity of electronic cable products. China CATV cable has experienced nearly 30 years of development. It has now become the world's largest producer and exporter, and exports account for about 50% of output. According to the State Administration of Radio, Film and Television, the domestic demand for CATV cable amounts to 3 million kilometers per year.

China's TV cable has undergone several stages of development, from solid core polyethylene insulation to chemical foam insulation, longitudinal hole (or dome) insulation, and physical foam insulation. At present, physical foam insulation is commonly used, collectively referred to as the fourth generation of television cables. Copper conductors are commonly used for inner conductor materials and aluminum-magnesium alloy conductors for outer conductors. The market differentiation of high-end and low-end TV cable products is obvious. A small number of companies insist on high-quality, high-end development, and the corresponding product prices are relatively high. The quality of most of the products of enterprises is not guaranteed, and there are suspicions of excessive production, and the prices of corresponding products are also relatively low. Low, this phenomenon has attracted the attention of the industry. Experts have called for attention to brand building and cannot allow Chinese-made products to become "roadside goods" from abroad. They must create Chinese brand names. As copper prices have skyrocketed and have been oscillating at high levels, CATV cables have also been using copper-clad aluminum wires as external conductors in recent years. Some companies have conducted comparative tests, and foreign companies have also demonstrated the rationality of material renewal.

Electronic cables also include many products, such as computer cables, cables for consumer electronics, cables for automobiles, and so on. There are various types of electronic cables and the future market is huge.