Although the Chinese wire and cable industry has experienced more than 20 years of significant development, it has not yet broken out of the vicious cycle of being large but not strong, and there is still a significant gap compared to world-class enterprises.

At present, foreign-funded enterprises account for a considerable proportion in China's wire and cable industry. There are many problems such as low concentration of the wire and cable industry, large and small-scale enterprises, insufficient economies of scale, insufficient independent innovation capabilities, and prominent structural contradictions in products.

With the development of technology and the support of national policies, the market capacity of the wire and cable industry has surged, maintaining an annual growth rate of over 8%.

1、 Special cables are still in short supply

The demand for special cables in the market is increasing day by day, but domestic cable companies have little ability to undertake these market demands. Due to various reasons such as technological level and production scale, there is a gap in this market.

Due to the high threshold, high profit margin, mild competition, and the ability to meet the needs of special environments and occasions, special cables will become the "darling" of the future market.

2、 The raw material prices in the wire and cable industry fluctuate greatly

It is understood that the wire and cable market in China is very chaotic, especially for home decoration wires. The reason why it is said to be chaotic is mainly reflected in the multitude of brands, significant price differences, and uneven quality.

3、 Oversupply of low-end wires and cables

For a long time, while the domestic cable industry has been thriving on the surface, there are still many stubborn problems. Although it continues to grow in scale, most enterprises in the industry have shrunk in scale, fallen behind in innovation capabilities, and are immersed in price wars in low-end fields.

The overall profit margin of the wire and cable industry is less than 5%, and the pure buyer's market has led to serious financial problems for cable companies, with many even facing bankruptcy. At present, the prominent problem in the product structure of China's wire and cable industry is the surplus supply of ordinary cable products, insufficient supply of high-end products, and prominent structural contradictions in products.

Industry experts introduce that China's wire and cable industry is facing good development opportunities. Enterprises in the wire and cable industry should strengthen their independent innovation capabilities, increase investment in new product and performance research and development, and face restructuring and reshuffle. Improve the competitiveness of enterprises and further seize market share.