Security cable market development is constrained

As an important connection and transmission medium for security systems, security cables have been greatly developed following the full application of security systems in social life. However, due to the recent supply of international copper raw materials, the development of the security cable market is subject to certain restrictions.

Cable market development is constrained

As the main production material of wire and cable products, copper materials account for more than 80% of the copper materials consumed by the wire and cable industry, of which power cables account for approximately 20%-30%, and wire and cable for electrical equipment accounts for approximately 28%-30%. Lines account for about 26%-29%, communication cables account for about 5%-7%, and other cables account for about 4%-5%. Some reports pointed out that although the demand for copper in developed countries is decreasing, with the development of emerging countries such as Asia, China and India, the demand for copper will continue to increase. Since 2000, copper consumption in the United States has dropped from 21.5% of world production to only 12.4%. In the same period, China’s copper consumption has rapidly risen from 12.8% of world production to 22.7%, and the market’s copper price will remain at a high level.

It is understood that due to the rising prices in the international market, the rapid growth of domestic demand, especially the impact of circulation speculation, the supply of raw materials such as copper is tight. Copper prices rose 6.58 times in four years since 2003, especially since the end of 2005, copper prices have continued to skyrocket. The excessively high raw material prices have severely restricted the normal operation and sustainable development of wire and cable and related sub-sectors.

Intense competition in the industry and lack of supervision in the market

The wire and cable industry is an important supporting industry for China's economic construction. It is widely used in various fields. Wire and cable provide infrastructure for the power industry and communications industry. It occupies 1/4 of the output value of the electrical industry in China. It is second only to the automotive industry in China. In the two major industries, product variety satisfaction rate and domestic market share exceeded 90%. In the world, China's total output value of wire and cable has surpassed that of the United States and has become the world's largest wire and cable producer. However, from the perspective of the development level of the entire domestic wire and cable industry, there are problems such as low industry concentration, decentralized technology, and weak corporate technology.

Today, China has more than 7000 large and small wire and cable companies. Over 97% of them are privately-owned SMEs. Most of them concentrate on low-end products, leading to excess capacity. Due to the lack of market supervision, some companies have changed their markets at low prices for their respective immediate interests, and there is a phenomenon that “prices are not affordable”. Coupled with the existence of such phenomena as cutting corners in a small number of enterprises, the trend of “low-price competition” in the cable industry has been exacerbated, which has led to a decline in the profitability of the entire industry.

Security cable development: R & D strength is the key

In China, with the rapid development of the national economy and information technology, the country’s investment in power grid construction has increased, coupled with the rapid development of the domestic security industry, which requires a lot of wires and cables, which have stimulated the domestic wire and cable industry. Great development. According to incomplete statistics, the cable market is growing at an annual rate of 8% to 12%, and the security cable is rapidly growing at a rate of 15% to 20%. Compared with electric power, telecommunications, radio and television and other industries, the security cable industry has objective conditions such as late start-up, backward technology and equipment, and small industrial scale. The major manufacturers of domestic cables mainly focus on the Yangtze River Delta and the Pearl River Delta region. According to the scale of the company and its characteristics, the company is generally divided into: foreign-funded enterprises, domestic professional companies, and general small-scale enterprises.

Foreign-funded enterprises also look to the huge potential of China's wire and cable industry and set up factories in China to break into the Chinese cable market. Such as the United States Belden, Italy Pirelli, France Nexans, and other famous cable brands. These companies' products cover almost all wire and cable product areas, ranging from 220 to 500 kV high-voltage and ultra-high-voltage cross-linked cables to tiny electronic cables. The size of the factories is very large or small. However, due to relatively high prices, these branded products are generally used in high-demand professional markets, so their market share will not be too high.

Domestic security cable leading enterprises, such as Shenzhen Lianjiaxiang, have good product quality and reasonable prices. At present, the company is also developing on a large scale; Guangzhou Yuedao is a weak cable company that has developed rapidly in recent years in China; It is a joint-stock company that produces high and low voltage electrical complete control equipment, ship (ship) cables and weak cables; Epson is jointly invested by Wharton International (Hong Kong) Investment Co., Ltd. and Shanghai Aipu Electronic Cable System Co., Ltd. The high-tech enterprise established has a high technological content of cable quality; Ningbo Zhouzhou is one of the largest professional intelligent building system engineering design and product manufacturing enterprises in China. These companies have advanced professional equipment, have professional R & D and production technology, product quality is stable and up to standard, they occupy 70% of the domestic security cable market share.

Private small businesses are mostly small companies that invest in individuals. Although some companies have certain production capabilities, most of them still stay in the small workshop-style production stage, investing only a few hundred thousand yuan to purchase a few necessary production equipment. For processing and production, most of their production processes need to be completed manually. There is no professional testing equipment and testing methods, and production process management is confusing. On-site production workers are both manufacturers of products and inspectors of products. Such non-standard production will result in the emergence of inferior cable products such as counterfeiting, cutting corners, and low performance, affecting the operation and development of the cable market.

Although China's security cable companies are experiencing mixed results, there are backbone forces that have been advertised as Lian Jiaxiang, Yindao, Diyi, Akihabara, Unicom, Epson, and Tiancheng. With a certain amount of R&D and production strength, they stand out in the competition of security cable disorder, which promotes the continuous advancement of security cable technology.