Great Potential for Electric Wire and Cable Industry

As the downstream industry of PE, the consumption volume of PE from electric wire and cable industry took up 2% of the total of PE. PE is widely used in producing clad materials such as insulating layers and sheathing layers for electric wire and cable benefiting from the excellent electrical insulation performance and prefect processability. In recent years, the wire and cable industry has maintained a steady growth trend, driving the development of PE industry. The following part will introduce the basic situation of China's wire and cable industries.

Wire and cable manufacturing is one of the largest supporting industries in China's national economy. At present, the wire and cable industry is the second largest industry in China's machinery industry, which is next only to the automotive industry. Its domestic market share is over 90%. In 2017, the market size of wire and cable industry in China reached 1,200 billion RMB, up 6.3% from that in 2016. In recent years, with the rapid and stable development of wire and cable industry, the wire and cable production and sales in China have surpassed the United States. China has become the world's largest producer of wire and cable.

In terms of import and export trade, the import value of wire and cable in China reached 35.41 billion RMB in 2017, up 7.2% Y-O-Y. The export volume was 149.32 billion RMB, up 7.7% Y-O-Y. At present, the low-voltage wire and cable is in the state of excess capacity. China mainly imports high-end cable and special cable.

In terms of capacity distribution, more than half of the wire and cable producers are concentrated in East China, especially the economically developed regions and coastal provinces. The producers in Guangdong, Zhejiang and Jiangsu take up over 50% of the total producers in China.

As the indispensable basic supporting industry of national economy, the demand volume of wire and cable increased rapidly along with the development of domestic power, transportation, energy, communication, construction, automobile and other industries in recent years. The continuous development of the national economy will bring huge market space and development potential to the electric wire and cable industry in the future. Therefore, the PE products will be more used in wire and cable industry.