Cable and wire industry faces import and export unfavorable factors

Wire and cable refers to materials used for power, electrical, and related transmission purposes. As China's new energy industry, shipbuilding industry, rail transit and UHV industries have all witnessed a period of fierce development, the demand for special cables is increasing.

According to relevant data, in 2014, China imported about 117,000 tons of cables and wires, the total value of which was as high as 2.325 billion U.S. dollars, or 13.837 billion U.S. dollars, a year-on-year decrease of 11.7%, and the import volume of wire and cable was about 115.54 million tons, compared with 2013. Year-on-year decrease of 2.7%.

The cable and wire industry is faced with unfavorable factors of import and export. It mainly includes five aspects:

First, there are more and more anti-dumping, technical barriers, and intellectual property rights frictions from the United States, the European Union, and other countries.

Second, China's export tax rebate rate will affect corporate profits and production costs.

Third, rising domestic labor costs will also affect exports this year.

Fourth, the recent overall performance of foreign trade is weak.

Fifth, there are quality problems in export products.

With China's new energy industry and other major developments, there is a great demand for cable products, especially special cable products. It is estimated that in the next five years China's special cable market usage will reach 40 billion yuan/year -50 billion yuan/year, and market sales will account for about 40% of the total domestic cable market sales.