Aluminum wire & cable exports in China increased 65% YoY in Feb

According to a report from Shanghai Metals Market Aluminum wire and cable exports in China increased in February because of the slow domestic market and immediate payment by overseas buyers.

Outbound shipments of wire and cables went up 65% year-on-year to 6,982 tonnes in February. Out of that amount, 5,675 tons were non-insulated steel-core aluminum stranded wire, cable, plaited bands and related products. The remaining 1,307 tons were other non-insulated aluminum stranded wire, cable, plaited bands and associated products.

A saturation point has been reached in China’s domestic market for wire and cable. There have also been issues related to delay in payments in case of domestic buyers because of tightening liquidity. However, overseas buyers are able to make immediate payments. This has driven Chinese producers to charge up exports.

Competition was tough in overseas market as well. SMEs secured fewer orders as overseas buyers were more demanding in procuring their orders. The issue of homogeneous products was creating problems for large wire & cable producers. Rivals in Europe and the US were also posing great threats to the Chinese producers. This has compelled Chinese producers to focus on quality so that they could grab a decent market share.