China Electric Cable Output Achieves 4.8M tonnes for Copper in 2010

Chinese electric cable production seemed to achieve 4.8 million tonnes for copper electric wire, 2.3 million tonnes for aluminum electric wire and 85 million kilometers core for optical fiber in 2010, which increased by 7-8%, 20% and 10-20% from 2009, respectively. The domestic demand increased steadily and electric cable makers maintained tremendous business investment. Mr. Wu shi-min, vice secretary general of Chinese Electrical Manufactures’ Association’s electric wire sectional meeting said in interview with Japan Metal Bulletin.

Mr. Wu explained aluminum electric wire was common used due to lower price than copper electric wire, and the demand for optical fiber expanded due to optical line for Fiber To The Home. Mr. Wu estimated the demand for copper electric wire grew at a sluggish pace due to higher copper price and decline of domestic large infrastructure project for copper electric wire in 2010.

Chinese electric cable production was at 4.1 million tonnes for copper electric wire, 1.4 million tonnes for aluminum electric wire and 60 million kilometers core for optical fiber in 2008, according to Metal Economics Research Institute, Japan. Japanese electric wire shipment is growing at a sluggish pace, but Chinese electric wire output continues upward trend.

Chinese electric wire makers are estimated 3,000-4,000 companies, which belong to the association, and 2,000-4,000 outsider companies. Excess in supply is chronic. Mr. Wu said the supply must have exceeded the demand in 2010. However, these companies don’t enter stage of business contraction or consolidation when Chinese market is expanding. Mr. Wu said it put in market competition for the supply and demand balance.

Mr. Wu put priority of Chinese electric cable industry in improvement of research and development capacity of each electric cable makers, and enhancement of international competitive power. Chinese electric cable makers sell over 90% of the products in domestic market, according to Mr. Wu.