Global wire and cable demand is expected to increase by 4% in CRU:2022

2021 is the year to recover from the worst effects of the Covid-19 pandemic. As national policies, industry exposure and stimulus measures largely determine the extent to which countries weather the storm, the economic rebound is not geographically balanced. The global wire and cable industry also reflects these trends.

On the whole, with the easing of supply constraints and the recovery of demand applications, the wire and cable industry has shown its resilience. In 2021, global cable demand continued to recover, with overall wire and cable demand growing by 5.5%.

CRU, the UK commodity research agency, said that despite inflation and rising interest rates, the recovery was expected to continue throughout 2022, with demand growth expected to be about 4 per cent.

As of February 2022, there have been more than 10 billion Covid-19 vaccinations worldwide. There is no doubt that this has greatly helped the wire and cable value chain to return to normal. By the end of 2021, the total global consumption of insulated metal wires and cables has exceeded the 2019 level.

In terms of commodities, 2021 is one of the most volatile years on record. Copper and aluminium prices both surged about 50 per cent year-on-year. Tight supply, low inventory levels, the energy crisis and a strong recovery in demand are one of the factors contributing to the rise in prices. The rise in commodity prices has also led to an increase in cable prices.

In terms of cable types, automobile production will increase moderately in 2021, and the absolute level is still much lower than that in 2019. This is mainly due to supply bottlenecks such as a shortage of semiconductors. However, sales of cable-intensive electric vehicles have almost doubled compared with 2020, leading to strong demand for winding wires.

China's infrastructure projects will improve demand for LVE cables: the crisis in China's real estate market made headlines in the second half of 2021. Nevertheless, floor completion increased by 11% year-on-year, supporting demand for LVE cables. However, CRU believes that demand growth for LVE cables in the Chinese market is expected to slow by 2024.