At present, the industrial chain of China's wire and cable industry is relatively mature, with upstream industries mainly providing basic materials for manufacturing wire and cable products, such as copper, aluminum, and their alloys; Rubber industry for manufacturing cross-linked insulation sleeves and sheath materials, polyethylene, polyvinyl chloride chemical industry, etc; The midstream includes wire and cable manufacturing enterprises that provide power cables, communication cables, electrical equipment cables, bare wires, winding wires, and other types of cables; The downstream mainly includes industries with demand for wires and cables, such as construction machinery, communication industry, power industry, and construction industry.

Industry competition pattern

1. Regional competition: Four wire and cable industry clusters have been formed nationwide

From the regional distribution of the number of enterprises in China's wire and cable industry, Shandong Province has the highest number of enterprises, followed by Jiangsu, Guangdong, Shanghai, Henan, Anhui, Shanxi, Shaanxi, Hebei, Zhejiang and other regions; In other places, such as Xizang, Qinghai, Hainan, Ningxia and other provinces, there are few enterprises.

From the perspective of wire and cable industry clusters, China's wire and cable industry has formed industrial clusters represented by Yixing in Jiangsu, Lin'an in Zhejiang, Wuwei in Anhui, and Dongguan in Guangdong. The main industrial bases mentioned above are all located in provinces in eastern China with large economic output and high investment in power construction. They compete with each other and have their own characteristics, such as Yixing's power cables and special cables, Wuwei's special cables, and Guangdong's cable exports.

Due to the high transportation cost of cable products, wire and cable enterprises have a clear transportation radius, so there are local enterprises with considerable scale and competitiveness in various regions. In order to effectively reduce transportation costs and explore markets in other provinces and cities, some large cable companies have adopted the approach of building factories in different locations or cooperating with local cable companies to enhance their competitiveness. To expand and consolidate the markets in North China and Northeast China.

2. Enterprise competition: low concentration in the wire and cable industry

From the perspective of wire and cable production, the national wire and cable production in 2020 was approximately 13400 kilometers. Based on the annual reports of various companies, in 2020, Jinbei Electric's wire and cable production reached 2.2063 million kilometers, with a market share of 1.64%; The production of wires and cables by China Super League Holdings has reached 2.0467 million kilometers, with a market share of 1.52%; Baosheng Group's wire and cable production reached 1.8912 million kilometers, with a market share of 1.41%. From the perspective of wire and cable revenue, in 2020, the national sales revenue of wire and cable was 1.07 trillion yuan. Based on the annual reports of various companies, in 2020, Baosheng Group's revenue from wire and cable sales reached 33.622 billion yuan, with a market share of 3.14%; Far East Electric's wire and cable revenue reached 17.211 billion yuan, with a market share of 1.61%; Hengtong Optoelectronics' wire and cable business revenue reached 13.064 billion yuan, with a market share of 1.22%.

Overall, the market concentration of China's wire and cable industry is relatively low, and the market is relatively scattered. With the continuous strengthening of quality and safety supervision and special rectification of wire and cable products by the country, a group of small-scale wire and cable enterprises lacking core competitiveness have been forced to exit the market, which is conducive to further enhancing industry concentration.