Wire and cable industry development bottlenecks

In recent years, China's wire and cable industry has been booming and has achieved remarkable results. However, compared with foreign counterparts, it is still in an emerging, low-tech state. Its independent innovation capability is not strong, its product structure is unreasonable, and the production of middle and low-end products is in excess. However, the production ratio of high-tech and high-value-added products is low, and the industrial chain is still not perfect. In response to this, the industry has called for strengthening supervision and regulating the development of the wire and cable industry.

“At present, in the domestic wire and cable market, product prices have become a magic weapon for many small and medium-sized enterprises. Since wire and cable is a typical heavy-duty, light-weight industry, the price of raw materials accounts for 70% to 80% of the total cost. Therefore, raw materials The advantages and disadvantages of the products have affected the quality of wire and cable products to a large extent.” Chen Shujun, general manager of Beijing Huitong Detai Cable Co., Ltd., told the “China Sankei Shimbun” reporter.

According to statistics, there are 7,000 cable manufacturers in China, but there are not many small-scale cable companies, more are small enterprises, and the production concentration of the wire and cable industry is low, and the market share of the largest companies is only 1 % to 2.5%.

A cable brand agent in Beijing revealed to reporters that at present in the domestic wire and cable market, shoddy, fake and shoddy, defective products are very serious, and even some "exempt products" also have quality substandard conditions. In addition, industry supervision also has the phenomenon of “punishment without penalty”. This situation also leads to difficulties in the wire and cable industry.

According to Chen Shujun, due to relatively low industry barriers and inadequate legislative supervision, numerous “home workshops” and “marriage shops” are still active in the wire and cable market. Their main competitive weapon is price, quality is hard to guarantee, and there is no technology. At the same time, the phenomenon of disregarding conditions and rushing to the top has caused the oversupply of some products and increasingly fierce market competition.

At present, the domestic wire and cable market management is very confusing. There is an unwritten rule in this circle. Even some high-quality cables from regular manufacturers will turn into “three non-products” at the middlemen.

According to reports, nearly 80% of Guangdong's wire and cable products were unqualified; the pass rate of sampling for wire and cable products in Hunan was less than 60%; the pass rate of wire and cable in Shanghai was only 34.4%; the pass rate of 51 wire and cable companies in Shaanxi Province was 35.3%. The wire and cable qualification rate in Anhui Province was less than 60%.

In recent years, the relevant government departments have taken various measures to supervise the wire and cable market, but they are still unable to curb the momentum of low-priced dumping in counterfeit and inferior cable markets. Many regular cable manufacturers want to be self-disciplined and not to compete at low prices. The quality standards of products can be strictly followed according to national standards. These large manufacturers cannot cut corners and materials, and the prices reported are much higher than they are. It is hoped that the industry associations can appeal to them and expose them to companies that have done too much to ensure a more standardized market environment.

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Jiangsu Shazi Electric Equipment Co., Ltd. , http://www.cnhotpoint.com