China's wire and cable industry chain is relatively mature, divided into upstream raw material industries, different types of cable manufacturing industries in the middle reaches, and various downstream application areas. The upstream raw material industry is relatively mature, providing a good foundation for the development of the wire and cable industry. The mid-stream wire and cable manufacturing industry has a relatively low concentration and a large gap compared with developed countries, mostly small and medium enterprises. The downstream application field has good development prospects, and the development goals of various industries have put forward new requirements for wire and cable output, product types and quality.
1. Analysis of the wire and cable industry chain
Wire and cable are the basic products used to transmit electrical (magnetic) energy, transmit information, realize electromagnetic energy conversion, and form automatic control lines. There is no strict difference between wires and cables, and wires and cables in a broad sense can also be called cables. Generally, products with simple structure without outer sheath and small outer diameter are called wires, and products with complicated structure, strong outer sheath with strong seal and large outer diameter are called cables. The main structure of the wire is "conductor + insulation", and the main structure of the cable is "conductor + insulation + sheath".
At present, the industry chain of China's wire and cable industry is relatively mature. The upstream industry is mainly the basic material industry that provides raw materials for the manufacture of wire and cable products, such as copper, aluminum and its alloys; the rubber industry that manufactures cross-linked insulating sleeves and sheath materials, polyethylene, Polyvinyl chloride chemical industry, etc .; midstream includes wire and cable manufacturing companies that provide power cables, communication cables, electrical equipment cables, and other types of cables such as bare wires and winding wires; downstream industries are mainly those that require wire and cable, such as engineering Machinery, communication industry, power industry and construction industry.
Figure 1: Industrial chain of wire and cable industry
The development of upstream industries is relatively mature
The upstream of the wire and cable industry is mainly the raw material industry: copper aluminum alloy, rubber sleeves and polyethylene, polyvinyl chloride chemical raw materials. Due to the long development time of the above-mentioned raw material industry, the technical level is relatively mature, and there are many companies in the industry, which can provide a good foundation for the development of the wire and cable industry. The main companies in the copper and aluminum alloy industry are Tongling Nonferrous Metals, Jiangxi Copper, Yunalumi, etc .; the main companies in the rubber industry are Hainan Rubber, Black Cat Carbon Black, and Hongda New Materials; the chemical industry is mainly polyethylene and polyvinyl chloride production On behalf of the company, there are Jinfa Technology, Pulit and Jinlu Group.
Figure 2: Brief introduction of major companies in the upstream industry of wire and cable
3. The concentration of the midstream industry is low, mostly small and medium enterprises
China's wire and cable industry started in the 1970s and has developed for more than 40 years. The scale of the wire and cable industry ranks first in the world, but the products are mainly low-end and the production and operation modes are relatively extensive. Big. In 2017, the top ten cable companies in China accounted for less than 10% of the total market share, the top 20 accounted for less than 12% of the total market share, and the top 100 accounted for about 20% of the total market share. This is in stark contrast to the highly concentrated industry in developed countries.
Table 3: China's wire and cable industry concentration (Unit:%)
From the number of enterprises, according to the statistics of the Wire and Cable Branch of the China Electrical Equipment Industry Association, in 2017, there were more than 18,000 enterprises in the wire and cable industry in China, and the number of enterprises above designated size was 4,034, accounting for less than 30%. The wire and cable industry has a high dependence on raw materials, especially the prices of the main raw materials copper, aluminum and their alloys. Small and medium-sized enterprises have a weaker pressure bearing capacity in the face of raw material price fluctuations, while larger enterprises can evade raw material prices through futures options The volatility risk, if it persists, will lead to the situation of the strong and strong, and promote the concentration of the industry.
Table 4: Number of Enterprises above Designated Size in China's Wire and Cable Industry, 2011-2017 (Unit: Home,%)
Four: downstream applications have a good prospect
The downstream application fields of the wire and cable industry are mainly the power industry, the communication industry, engineering machinery, and the petrochemical industry. Since the "Thirteenth Five-Year Plan" period, most downstream application areas of the wire and cable industry have proposed development goals for 2020. In the future, there will be more demands on the production, type and quality of wire and cable products to promote the rapid development of the wire and cable industry in China.
Figure 5: Development goals of various industries in the downstream application fields of wires and cables
For more data, please refer to the "Forecast of China's Wire and Cable Industry Development Forecast and Investment Strategic Planning Analysis Report" issued by Foresight Industry Research Institute.
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