Since 2020, the global wire and cable market is in a difficult situation due to the COVID-19 pandemic. With the gradual recovery of the world economy, the size of the global power cable market will gradually recover.
Opportunities and Challenges of the World Cable Market in the Covid-19 Pandemic
The global wire and cable industry is returning to healthy growth, driven by government and private investment, but at a slightly slower pace than in the previous five years.
Among them, emerging markets, represented by Africa and Southeast Asia, are developing rapidly. Your construction activities, infrastructures, public services and industrial development will accelerate. These activities will provide significant upside potential for wire and cable demand in emerging markets..
According to the forecast, after 2023, world market demand for the wire and cable industry will recover to the level of 2019.
The global wire and cable market is expected to expand at a CAGR of 5% from 2022 until 2026. And the global market size of the metal insulated wire and cable industry is expected to reach 230 billion dollars in 2026.
Opportunities and Challenges of the Cable Market in the Conflict between Russia and Ukraine
Since the escalation of tensions between Russia and Ukraine, the world economy has been affected by this war. So, what are the global cable market trends in light of the russian-ukrainian conflict?
Impact of the Conflict between Russia and Ukraine on the Copper Market
The escalation of the conflict between Russia and Ukraine has a negative impact on copper. Risk aversion in the market has heated up even more, temporarily suppressing the price of copper.
Currently, Many of the European and US sanctions against Russia mainly affect the financial sector. In the context of growing inflationary pressures in Europe and the United States, mineral sanctions expected to be unlikely.
oil prices, natural gas and cereals have risen due to the collision between Russia, large supplier of energy and producer of food, and Ukraine, europe barn. So, the cable market will be influenced by it.
Impact of the Conflict between Russia and Ukraine on Aluminum Smelters
Since the conflict between Russia and Ukraine, an energy crisis has broken out in Europe. Aluminum smelters in Europe first faced a sharp reduction in natural gas supply. Electricity prices have gone up. This has caused impacts on the production of several aluminum smelters in Europe.
As the conflict escalates, EU sanctions against Russia have increased. High electricity prices are not only a consequence of gas shortages, but also from rising coal and oil prices.
Rising energy prices have caused electricity prices to skyrocket. This has led to a reduction in the production scale of electrolytic aluminum companies in the European region under cost pressure.. The scarce availability of raw materials has also affected the price of aluminum electrical cables.
With the escalation of the energy crisis, electrolytic aluminum production cuts have increased from Europe to North America. Since October 2021 until the end of August this year, production cuts in Europe and North America due to the energy crisis have reached 1,3 million tons/year, con 1,04 million tons/year in Europe and 254.000 tons/year in the United States.
The 27 of June, casting Century Aluminum en Hawesville, Kentucky, closed due to rising energy costs, what it meant 170.000 tons of capacity. The Slovak aluminum company Sovalco has announced that it will stop producing aluminum from September. Dunkirk Aluminium, Europe's largest aluminum foundry, has announced a cut in production of the 20%, Which affects 58.000 tons/year of capacity. The cumulative reduction in Europe will amount to 1,534 million tons/year.
The global wire and cable market continues to experience growth despite pressure on raw material supply and manufacturing output. In line with continued urbanization and infrastructure development, global market demand for cables will continue to grow steadily. Until 2028, will reach a CAGR of 6,6% during this time.
Increased demand for electricity and energy in the commercial sectors, industrial and residential is the main factor contributing to the growth of this market. At the same time, increased investment in smart grid development and improvement of smart transmission and distribution systems will also drive market expansion.
Governments are increasingly applying green energy technologies. Solar power and wind turbine installation is expanding, which increases the demand for special electrical wires and cables.
The wire and cable market share will also benefit from increased investment in the industrial sector. Customers are increasingly demanding products that offer reliability and confidence in performance for a wide range of industrial automation applications..
Besides, The rapid expansion of communications and investments in infrastructure and modernization of networks are stimulating the growth of the world market for cables and aerial fiber optic lines.
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