CRU cuts demand for global metal insulated cables to 1.8% in 2019
[Cable Network News] Recently, the British commodity research institute CRU announced that the global metal insulated cable market will face increasing pressure this year, mainly due to the slowdown in the terminal application market and the intensification of trade tensions. Therefore, the CRU lowered the growth rate of metal-insulated cables in 2019 to 1.8%, which is about 19.2 million tons, based on the weight of the conductor.
From the perspective of the market, the sharp decline in the European automotive industry is a major factor affecting the growth of demand in the European market. In addition, the slowdown in China’s economic growth and the growing trade war are affecting demand growth in the major cable markets worldwide.
On the other hand, the rapid growth of emerging economies such as India and Africa will also have a positive impact in the medium term.
From the perspective of the terminal application industry, the transportation industry has experienced the slowest growth rate last year and is expected to remain weak in 2019 and beyond. Prysmian's successful acquisition of General Cable further strengthens its position as the world's top cable manufacturer and is the only company in 2018 with more than $10 billion in cable revenue.
From the perspective of raw materials, CRU expects that the average price of copper and aluminum will be lower than 2018 this year, further dragging down the total market value of wire and cable.
In the medium term, CRU expects a global compound annual growth rate of 2.5% for globally insulated wire and cable demand between 2018 and 2023, and 21.3 million tons (by conductor weight) by 2023, and 2013 to 2018. The compound annual growth rate is 2.9%.