Global Cable Demand Is Expected To Grow By 4% In 2022

2021 is the year of recovery from the worst impact of the Covid-19 pandemic. The economic rebound has been uneven geographically, as national policies, industry exposure and stimulus largely determine how well countries weather the storm. The global wire and cable industry also reflects these trends.
 

Overall, the wire and cable industry has shown its resilience as supply constraints ease and demand applications recover. In the whole year of 2021, the global cable demand continued to recover, and the overall wire and cable demand achieved a growth of 5.5%.
 

Despite inflation and rising interest rates, the recovery is expected to continue throughout 2022, with demand growth expected to be around 4%, UK commodity research group CRU said.
 

As of February 2022, more than 10 billion Covid-19 vaccines have been administered globally. Undoubtedly, this has greatly helped the wire and cable value chain return to normal. By the end of 2021, the total global consumption of insulated metal wire and cable has exceeded the level of 2019.
 

When it comes to commodities, 2021 has been one of the most volatile years on record. Both copper and aluminum prices surged about 50% year-on-year. Tight supplies, low inventory levels, an energy crisis and a strong recovery in demand are among the factors driving prices higher. Rising commodity prices have also led to higher cable prices.
 

In terms of cable type, vehicle production will grow moderately in 2021, and the absolute level will remain well below 2019 levels. This is mainly due to supply bottlenecks such as semiconductor shortages. However, sales of cable-intensive electric vehicles have nearly doubled compared to 2020, leading to strong demand for winding wires.