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Industry Information
China's wire and cable industry bid farewell to overcapacity in 2011
2011-3-9 10:08:12

2011 is an important year for China's wire and cable industry to recover and develop rapidly. Sales, profits, import and export trade and other major economic indicators are growing faster than expected at the beginning of the year. It is expected to grow by about 23%. Only Anhui Zhongsheng Cable Group The cable sales amounted to 500 million yuan from January to February. There are three main reasons for this success:

First, the country's macroeconomic recovery, continuous and stable policies, and providing a favorable macro environment for the development of the wire and cable industry; Second, the power construction has driven the rapid development of the wire and cable industry. In recent years, China's power construction has been fast The great surprise of the world; Third, the recovery of the world economy and the rise in external demand have also further driven the restorative growth of China's electrical and electronic products exports.

A report recently provided by the China Electrical Appliance Industry Association stated that the overcapacity problem of low-end products in the wire and cable industry was prominent in 2010, especially in light of the fact that the production capacity of the cross-linked cable is already severely overstretched. Production lines cause problems such as duplication of construction, waste of funds, and idle capacity. At the same time, China's electrical appliance industry has insufficient production capacity in high-end products including ultra-high-voltage cables and special-purpose cables, resulting in the overwhelming majority of products or raw materials relying on imports and gaining recovery in the 2011 wire and cable industry. Rapid development bids farewell to overcapacity. Obviously, farewell to overcapacity is structural. According to the national plan, from now until the end of the "Twelfth Five-Year Plan", China will add 70 to 80 million kilowatts of installed power generation capacity every year. Electricity is An important barometer of economic development, and a better national economy provides a stable environment for the development of wires and cables. Data show that in the first two months of 2011, China's wire and cable industry has resumed a strong growth momentum, with an increase of more than 23% year-on-year, and the monthly production and sales rate has maintained a good sales performance of more than 96%.