The Global Trends Wire and Cable Industry
2021 is the year of recovery from the worst impact of the Covid-19 pandemic. The economic rebound has been uneven geographically, as national policies, industry exposure, and stimulus largely determine how well countries weather the storm. The global wire and cable industry also reflect these trends.
The year of recovery from the worst impact of the COVID-19 pandemic. The economic rebound has been uneven geographically, as national policies, industry exposure, and stimulus largely determine how well countries weather the storm. The global wire and cable products also reflect these trends.
In general, the wire and the cable industry has shown its resilience as demand applications recover. In the whole year of 2021, the global cable demand continued to recover, and the total wire and cable demand achieved a growth of 5.5%. The UK commodity research group said, despite inflation and rising interest rates, the recovery is expected to be around 4%.
Recovery of Wire and Cable Industry
Until February 2022, more than 10 billion people have been getting the COVID-19 vaccine. Undoubtedly, this has greatly helped the wire and cable value chain return to normal. By the end of 2021, the total global consumption of insulated metal cable has exceeded the level of 2019.
When it comes to commodities, 2021 has been one of the most volatile years on record. Both copper and aluminum prices surged about 50% year on year. Lower stocks, tightly suppliers, an energy crisis, and a strong recovery in demand are among the factors driving prices higher. Rising commodity prices have also led to higher cable prices.
In terms of cable types, vehicle production will grow moderately in 2021, and the absolute level will remain well below 2019. This is mainly due to supply bottlenecks such as semiconductor shortages. However, sales of cable-intensive vehicles have nearly doubled compared to 2020, leading to strong demand for winding wires.
China’s infrastructure projects to improve LVE cable demand. China’s property market crisis headlines in the second half of 2021. Still, floor completions rose 11% year over year, supporting LVE cable demand. However, the UK believes that demand growth for LVE cables in the Chinese market is expected to slow through 2024.