CRU: Global metal cable consumption will reach 18.9 million tons in 2018

"In 2017, the global demand for insulated wire and cable market increased by 19% to $161 billion
.
The recovery in 2017 was mainly due to the improvement of the external economic environment, industrial policy and political stability
.
At the same time, the rise in base metal prices has supported the insulated wire and cable market
.
Hadrien Guillotin, a market analysis expert in CRU wire and cable market at commodity research institutes, said
at the 2018 China Wire and Cable Industry Conference.

According to Hadrien Guillotin, in 2017, low-voltage power cables accounted for 40% of the total market demand for insulated wires and cables throughout the year, followed by copper-led power cables, accounting for 25%, winding wires accounting for 15%, data cables accounting for 10%, aluminum conductive power cables accounting for 8%, and communication cables accounting for 2%.

Overall, construction, utilities, transportation and industry are the four major application areas
of cable.
Specifically, utility power is the largest application field of energy cables, accounting for 50%; Construction is the largest application field of communication cables, accounting for up to 64%, and industry is the largest application field of winding wires, accounting for 65%.

In terms of conductor consumption, construction accounts for 39% of total consumption, followed by utilities with 26%, industry with 24%, and transportation with 11%.

On the other hand, from the perspective of metal cables, global demand increased by 3.
4% to 18.
3 million tons
in 2017.
Average demand growth since 2012 has reached 2.
8 percent, almost half
the average growth rate from 2003 to 2007.
Especially in 2009, the global financial crisis caused the demand for metal cables to fall by 7.
6%
that year.

China is the world's largest single demand market
.
In 2017, China's wire and cable consumption accounted for 34% of the global total (calculated by the conductor weight of metal cables), North America accounted for 12%, Western Europe accounted for 12%, Eastern Europe accounted for 5%, India accounted for 7%, and ASEAN accounted for 5%.

From the perspective of manufacturers, the world's largest cable manufacturers are still concentrated in developed countries
.
According to the output value statistics of insulated cable companies in 2017, cable manufacturers with more than 3 billion US dollars include Prysmian (8 billion US dollars), Nexans (6 billion US dollars), the southern line of the United States (5.
2 billion US dollars), General Cable (3.
9 billion US dollars), Sumitomo Electric (3.
7 billion US dollars), and CommScope Cable (3.
5 billion US dollars).

It is estimated that in 2018, the global consumption of metal cables will reach 18.
9 million tons.

Among them, China is expected to grow by 3.
5% to 6.
5 million tons, India will continue to maintain a growth rate of about 7% to 1.
2 million tons, the Gulf Cooperation Council and Turkey account for about 1.
2 million tons, ASEAN accounts for about 900,000 tons, Africa accounts for about 700,000 tons, and South America accounts for about 600,000 tons
.
It can be seen that in 2018, India, the Middle East, South America and other emerging markets wire and cable growth is the strongest
.
It is estimated that China, India and Northeast Asia account for nearly 50%
of the global wire and cable consumption.

Hadrien Guillotin believes that in 2018, the output value of the global wire and cable market will continue to grow
.
With the advancement of the Made in China 2025 plan, China is moving towards
higher value markets.
It is expected that China's cable industry will maintain a steady growth rate of about 3%, although it is lower than the previous growth rate of 5
%.
However, with the emergence of trade frictions, US tariffs on China are generally focused on products that benefit from the "Made in China 2025" strategic plan
.
Therefore, the uncertainty of the trade war on continued development remains
.

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