The cable industry encounters two hot days: overseas market dividends accelerate release

The cable industry encounters two hot days: overseas market dividends accelerate release

2019-08-23 15:21

Since the second half of 2018, the sluggish trend of the fiber optic cable industry is still continuing, which can be confirmed from the aspects of production and price. The data shows that as of July, China's total cable output in 2019 reached 146.52 million core kilometers, down 10.1% year-on-year, less than the same period in 2017 and 2018,and the cumulative value in 2017 and 2018 was 2.014 billion core kilometers and 19.12 billion yuan respectively. Core kilometers. The following is the cumulative production and growth trend of optical cable in the longitudinal time from January to July in the past three years:


In terms of price, the fiber optic cable industry in the second half of 2018, the market has turned sharply, the market is filled with pessimism. From the price of the first 80 or so, to the price of fiber optics of about 30 yuan in China Mobile Collection and Tendering in 2019, and then the price of China Telecom's optical cable collection will reproduce the "Waterloo" misery.
The continuous decline in output and the continuous decline in prices are due to the slowdown in China's 4G construction and the sturdiness of FTTH coverage. In the initial stage of 5G construction, if there is no large-scale demand for the fiber optic cable industry, how to find a breakthrough and open up a new development pattern has become an urgent problem for enterprises in the fiber optic cable industry.
The so-called East does not brighten the West, and the South has the North. When the domestic market is weak, the fiber optic cable industry enterprises vigorously explore overseas markets, which is an important direction to enhance the competitiveness of enterprises and create a new development engine.
From the general environment of import and export trade, in the first half of 2019, the import and export of high value-added and high-tech knowledge-intensive services developed rapidly, with an import and export volume of 892.39 billion yuan, an increase of 9.4%, of which telecommunications, computers and Information service exports increased by 15.7% and imports increased by 19.6%. It can be seen that the growth of telecommunications industry service exports is more obvious.
Secondly, the positive effects of the “Belt and Road Initiative” are constantly emerging. China has established service trade with more than 200 countries and regions around the world. In 2018, the import and export volume of China and the countries and regions along the “Belt and Road” reached US$121.7 billion. The growth rate of imports and exports along the “Belt and Road” countries is higher than the overall growth rate of national imports and exports. In the first half of the year, China's total import and export of countries along the “Belt and Road” increased by 4.24 trillion yuan, an increase of 9.7%, which was 5.8 percentage points higher than the national total import and export growth rate, accounting for 28.9% of China's total import and export value, and the proportion increased by 1.5. percentage point. The potential of trade cooperation between China and the countries along the Belt and Road Initiative is being continuously released and has become a new driving force for China's foreign trade development.
Taking Changfei as an example, under the promotion of China's “One Belt, One Road” initiative, Changfei has already established new factories in Myanmar, Indonesia and South Africa, and in July added Peru's “National Broadband Cooperation Project”. Data show that Changfei's optical fiber overseas business grew by 62.54% year-on-year in 2018, and optical cable accounted for 73.9% of overseas sales revenue; Changfei's export trade in the first half of 2018 increased by 70%. In addition, Hengtong, Bonfire, Zhongtian and Fortis have made some progress in vigorously “going out”.
Third, combined with the analysis of China's fiber optic cable exports in recent years, the fiber optic cable industry has maintained a certain growth momentum. The data shows that China's export optical cable volume reached 34.7 million core kilometers in 2017, and the export optical cable volume in the first half of 2018 has reached 21.24 million core kilometers, and the growth momentum is more obvious. Nowadays, China is already the world's largest producer and seller of fiber optic cable, and the overseas market will become an important "engine" for the performance growth of fiber optic cable industry in the future.
From the above, although the domestic fiber optic cable industry market is in a downturn, this does not prevent the industry from finding new ways to develop, turning the crisis into an opportunity, and developing towards a good situation. With the continuous growth of China's telecom industry service trade export, the promotion of the “Belt and Road Initiative” and the steady growth of China's optical cable exports, China's fiber optic cable industry enterprises are deeply establishing an international development pattern and improving their competitiveness. Will continue to receive the dividends brought by overseas markets.
Source: Photoelectric communication

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