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Latest news indicates that the wire and cable industry
is not staggering, but has good growth potential. This growth potential
can be attributed mainly to increasing demand in the sectors of
infrastructure development in Eastern European and the old Russian
countries. These factors are also largely responsible for the good
growth potential in Asia. Western Europe and North American markets
have become quite matured and are under tremendous pressure due
to higher fixed cost. As a result, North American suppliers are
shifting base to Mexico as well as Central America, while the suppliers
from Western Europe are shifting to the Eastern European countries.
PVC still continues to be the major material used, but Polyolefins
are gradually snatching the market share from PVC. Fire hazards
and other environmental issues are the two major driving forces
responsible for the shift in the wire and cable industry from PVC
to Polyolefins. World demand indicates 2/3rd share for PVC, expected
to grow only at a modest rate of 1%. PP, however, is expected to
grow at 5% and the Polyethylenes at about 4 %. The shift from PVC
to Polyolefins in the wire and cable industry is more prevalent
in North America and Western Europe. In these countries, the share
of Polyethylene is estimated at 75% of PVC.
Overall demand in wire and cable industry would grow at about 2%
compared to the overall growth of GDP at 3-3.5%. Power sector will
continue to consume major volumes. Telecom and IT will also gain
share as they have become commodity markets. Some of the newer developments
still continue to be in the areas of faster extrusion speeds (as
high as 2500meters/minute) for telecom cables, PE low-tension cables
with fire resistant characteristics.
(Information based on the Wire Show organized
at Dusseldorf, Germany in April 2004)
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