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JIUKAI Holding Group Wuxi Qunxing Cable Co., Ltd. JIUKAI SPECIAL CABLE (SHANGHAI) CO.,LTD
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    Home Group Dynamics Industry news

    China's wire and cable development is at a high speed.

    Joca 2018-10-22 1864hit return

    SMM News: In recent years, China has become the world's manufacturing center, and China's wire and cable is in a state of rapid development. The number of new companies has been rising and the overall technical level of the industry has been greatly improved. China's wire and cable industry has formed a huge production capacity on the basis of a large number of technology introduction, digestion and absorption, and independent research and development.


    From the perspective of product structure, the homogenization of low-end products is serious. About 90% of wire and cable enterprises in China are mainly engaged in the production of medium and low voltage wire and cable products. The production equipment is simple in process, while high-end products such as nuclear power special cables, ship cables and other fields mainly rely on imports.


    At present, China's wire and cable industry is highly competitive in the market, and most domestic small and medium-sized enterprises use price competition. The development of wire and cable enterprises is insufficient, and the ability of independent innovation is not strong. In the low-end wire and cable market with relatively low technology added value, the situation of price-price competition is quite common. More than 40% of the companies in the industry have experienced less than the cost of winning the bid, peer pressure and other bad competition. At the same time, the cost of raw materials for wire and cable is rising, and most of the products produced in China are low-end and long-end wire and cable products. Therefore, many wire and cable manufacturers are in a state of low profit or even loss.


    In general, the profitability of China's wire and cable manufacturing industry is lower than the average level of the machinery industry. The overall capacity is seriously overcapacity, the industrial concentration is not high, the independent innovation capability is not strong, the homogenization competition of the middle and low-end products is serious, the overall level of product quality is not high, the industry is over-expanded and the market competition is not standardized.


    With the maturity of the global wire and cable market, the development of the wire and cable manufacturing industry has slowed down, the growth rate is not large, the demand is declining, the cable companies have relatively excess capacity, the prices are lower, the competition among enterprises is intensifying, and copper, aluminum, plastics, etc. Factors such as the sharp rise in raw materials have made many cable companies difficult to develop, and a large number of small and medium-sized enterprises or non-professional wire and cable factories have withdrawn from the market in different ways.



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