The outlook of the wire and cable market

What is the current state of health of the wire and cable industry?
What impact is the war between Russia and Ukraine having on market dynamics?
What is on the horizon for the fiber optic business?
To answer all these questions we asked Michael Finch, Head of CRU's Wire and Cable team.

'Last year, the metallic wire and cable industry experienced a pronounced recovery,' says Michael, 'although recent developments resulted in a weakening in global demand.' The conflict in Ukraine, and the resurgence of Covid-19 in some countries, including renewed lockdowns in China, may hinder the prospects for cable demand. There are encouraging trends in single areas – see stimulus measures in the US. What's more, the fact that efforts are increasing in Europe to diversify away from traditional fuel sources will be beneficial for power cable demand in the medium term. CRU estimates that more than 10 tons of cable conductors are consumed for every MW of installed offshore wind capacity (eight times more than in natural gas plants).
What about the optical fiber industry? According to Michael Finch, 'this year, it is set for the fastest growth in demand since 2017.' The key drivers are increased investments in fixed lines and in the construction of 5G networks. Data centers, edge, and cloud computing support positive forecasts for the fiber optic market over the next five years.
As for the biggest hurdles the industry will face in the short term, labor, logistical and transportation problems, and the rising cost of raw materials are the three bogeymen to watch out for.
The next CRU Wire & Cable Conference in London aims to address some of the key challenges and opportunities the wire and cable industry faces in its recovery from the recent disruptions, and transition to a greener and more connected world. For further information about the event, please visit www.wireandcableconference.com.
A more extensive outlook provided by Michael Finch is available at this link. 



Picture on top by benkdahl, Pixabay