Analysis of Competitiveness of China's Wire and Cable Industry
At this stage, the more prominent problems in the product structure of the wire and cable industry are the insufficient supply of ordinary cable products, insufficient supply of high-end products, and prominent product structure contradictions. In the medium and low voltage wire and cable market, the vast majority of domestic wire and cable companies have serious overcapacity due to low technical content and numerous production companies.
In a high-voltage cable market in the field of high-voltage and super (super), due to technical requirements and strong financial strength, especially the domestic effective supply of super (ultra) high-voltage cables is in short supply, and high-tech, high value-added products have not been formed in domestic batches. Products still need to be imported. At present, in the field of high voltage and ultra (ultra) high voltage XLPE cables, 500kV and above XLPE cables mainly rely on imports, domestic joint ventures, and several large enterprises. The competition is relatively slow and the level of profit is relatively high.
However, in recent years, with the rapid development of China's economy and the increasing demand for wires and cables, manufacturers such as Prysmian in Italy and Alcatel in France, which are among the top in the world, have become sole proprietorships or joint ventures in the Chinese market to compete in the industry.
In the field of special cable market, due to the need to meet the requirements of special environment, installation, operating conditions and special functions, there are special requirements for the structure, insulation and sheath materials of cables, and high technical requirements. The qualification requirements are high, so the added value of products is high, the profit level is high, and the gross profit margin and other indicators are higher than the industry average.
To sum up, the competition in China's wire and cable industry is relatively fierce, but the market prospect is broad. Because of this, under the economic downturn in Europe and the United States, more and more well-known foreign companies have been attracted to participate in the competition in the Chinese market. This also requires that domestic wire and cable manufacturers in China must increase their R&D efforts and R&D costs, and enter the high-end market in order to take the differentiated competition route to win.
To sum up, the competition in China's wire and cable industry is relatively fierce, but the market prospect is broad. Because of this, under the economic downturn in Europe and the United States, more and more well-known foreign companies have been attracted to participate in the competition in the Chinese market. This also requires that domestic wire and cable manufacturers in China must increase their R&D efforts and R&D costs, and enter the high-end market in order to take the differentiated competition route to win.