China & Southeast Asia Cable Industry Monthly Report_Jan. 2014
Consolidated by RMR Market Research Company, for internal reference only.
Index
1Mainland China [Construction][Power][Communication][Wires & Cables][Smart Home][FTTH][Others]
1.1Real estate development and sales in China in 2013 [Construction]
1.2The 2 power grid enterprises invested as much as RMB 276.1 bln into the new round of rural grid rebuilding [Power]
1.3SGCC’s planned investments in 2014 reach RMB 403.5 bln, increased by nearly 20% over 2013 [Power]
1.4SGCC will accelerate the construction of unified power market [Power]
1.5Copper wire access persistently improves the speed and escorts the state’s broad band strategy [Communication]
1.6Needs in the optical fiber market are week and the degree of production capacity excess reaches 50% [Communication]
1.7Needs for low-voltage wires may rise persistently [Wires & Cables]
1.8Annual needs for aviation cables reach RMB 1.8 bln and the market is huge [Wires & Cables]
1.9China’s output of power cables in Jan.-Nov. 2013 [Wires & Cables]
1.10New fruits of research on superconductive wires and cables are expected to be put into use in 2020 [Wires & Cables]
1.11Key application areas of HTS (high-temperature superconductivity) cables [Wires & Cables].
1.12Ministry of Housing and Urban-Rural Development issued the new standards, and the wire and cable industry is faced with transformation and upgrading [Wires & Cables]
1.13Development of new energy drives needs for related cables [Wires & Cables]
1.14The suspension of ultra high voltage project may result in drop of needs for cables for power grid [Wires & Cables]
1.15China’s Import and export of wires and cables in Q1-Q3 of 2013 [Wires & Cables]......
1.16The market size of 160 kv DC cables may reach RMB 100 bln [Wires & Cables]......
1.17The ecological output value of smart appliances will reach 1000 bln [Smart Home]......
1.18In 2015, the PFTTH market size will RMB 3.535 bln [FTTH]
1.19The excessive supply in the copper market will go on [Others]
2Taiwan [Construction][Power][Communication][Wires & Cables]
2.1In 2014, Taiwan real estate market remains stable [Construction]
2.2In 2014, Taiwan photovoltaic market size is expected to reach 21 bln [Power]
2.3Expectation of the administration of Bureau of Energy in 2014 [Power]
2.4Optical communication manufacturers in Taiwan show the trend of integration [Communication]
2.5In Taipei, the optical fiber coverage will exceed 95% in next year [Communication]
2.6TESubcom plans a coherent submarine system of 6500 km [Wires & Cables]
3Thailand [Construction][Power][Communication][Others]
3.1Due to deterioration of Thai political situation, the housing association worries about drop of purchasing power [Construction]
3.2Thai construction industry will be faced with challenges and will decline in 2014 [Construction]
3.3PEA: The electricity consumption may drop in this year [Power]
3.4NSTDA: The communication market will shrink in this year [Communication]
3.5Thammasat University said that the economic recovery will take 5 years due to the continuous political conflict [Others]
3.6Thailand’s needs for energy are expected to grow by 2.5% in 2014 [Others]
4Indonesia [Power][Communication][Others]
4.1Indonesia government conduct tendering of 80 solar power station projects gradually [Power]
4.2The revenue of the electricity transmission and distribution transformer substation market in SE Asia is expected to reach RMB 16.4 bln in 2018 [Power]
4.3Indonesia loosened the restriction on foreign investments into power and other fields [Power]
4.4Indonesia Indosat plans to invest USD 430 mln into upgrading of networks in this year [Communication]
4.5Ministry of Finance of Indonesia reported that no macroeconomic indicators of 2013 can reach the goals [Others]
5Vietnam [Construction][Power][Wires & Cables][Others]
5.1Vietnam make efforts to restructure the real estate market [Construction]
5.2In 2013, Vietnam raised VND 41000 bln for new countryside construction [Construction]....
5.3In 2013, the total transmission volume of EVN NPT reached 111.86 bln kwh [Power]......
5.4USA ExxonMobil intends to investor into thermal power plant projects in Vietnam [Power]...
5.5Ha Tien-Phu Quoc Island submarine cable will be connected with the state grid before the Spring Festival of 2014 [Wires & Cables]
5.6Vietnam government launched major measures for economic and social development in 2014 [Others]
6Philippines [Construction][Power][Communication][Wires & Cables][Others]
6.1The real estate industry has risks of bubbles in Philippines [Construction]
6.2Philippines government increased the reconstruction budget by PHP 14.5 bln [Construction]
6.3Newly added electric power of Philippines is 250-300 mw per year [Power]
6.4The electricity transmission price of Philippines State Grid dropped to below RMB 0.1/kwh [Power]
6.5Philippine Long Distance Telephone Company (PLDT) finished laying of submarine cables of 150 km [Communication]
6.6Philippines State Grid focuses on “Super Asian Power Grid” [Wires & Cables]......
6.7State Nuclear Electric Power Planning Design and Research Institute will sign a strategic agreement with Philippines State Grid [Others]
6.8Philippines Metrobank forecasted that Philippine economy will grow by 6% in 2014 [Others].
6.92015 financial budget of Philippines will grow by 15% [Others]
1Mainland China [Construction][Power][Communication][Wires & Cables][Smart Home][FTTH][Others]
1.1Real estate development and sales in China in 2013 [Construction]
( In 2013, China’s real estate development investments were RMB 8601.3 bln, increased nominally by 19.8% over 2012 (actually by 19.4% after deduction of price factors), the growth speed rose by 0.3% over that in Jan.-Nov. and by 3.6% over 2012.
Real estate developers’ building construction area was 6.65572 bln sq.m., increased by 16.1% over last year and the growth speed was almost the same as that in Jan.-Nov.; the housing construction area was 4.86347 bln sq.m., increased by 13.4%. The newly started building construction area was 2.01208 bln sq.m., increased by 13.5%, and the growth speed rose by 2%; real estate developers’purchased land area was 388.14 mln sq.m., increased by 8.8% over last year, and the growth speed dropped by 1.1% over that in Jan.-Nov.; the land transaction value was RMB 991.8 bln, increased by 33.9%, and the growth speed rose by 2.4%.
2014-01-20
1.2The 2 power grid enterprises invested as much as RMB 276.1 bln into the new round of rural grid rebuilding [Power]
( By Nov. 2013, the 2 power grid enterprises totally invested RMB 276.18 bln into the new round of rural grid rebuilding & upgrading and power construction of non-electrified areas.
In the last 3 years, SGCC built and rebuilt 5003 power stations, 768,100 km of high/low-voltage lines and 315,000 distribution transformers.
2014-01-14
1.3SGCC’s planned investments in 2014 reach RMB 403.5 bln, increased by nearly 20% over 2013 [Power]
(National Business Daily) SGCC disclosed that SGCC plans to finish investments of RMB 403.5 bln into fixed assets in 2014, including investments of RMB 381.5 bln into power grid. In 2013, SGCC’s planned investments into power grid were RMB 312.8 bln but SGCC actually invested RMB 337.9 bln. Therefore, SGCC’s planned investments in 2014 are increased by nearly 20% over the planned investments in 2013 and by about 13% over the actual investments in 2013.
<State Grid News> indicates that SGCC will start construction of 61,000 km of AC lines of 110(66) kv or above and 8260 km of DC lines in 2014; put 51,000 km of AC lines of 110(66) kv or above and 1570 km of DC lines into production.
2014-01-09
1.4SGCC will accelerate the construction of unified power market [Power]
( SGCC 2014 Work Conference held on Jan. 6 pointed out to accelerate the construction of unified power market.
According to the conference, SGCC will insist on the marketization, focus on building of market rules and perfecting of electricity price system, supervise intermediate links, sell electric power by tendering, buy electric power by bidding, and build the unified, open and orderly power market.
2014-01-06
1.5Copper wire access persistently improves the speed and escorts the state’s broad band strategy [Communication]
( copper wire technology has developed from the traditional ADSL2+ to VD2L2+, Vectoring and G.FAST, band width has risen from 2M to 100M, even 1G or more in future. Let us compare the existing copper wire technology and the state’s strategic goal of broad band: VDSL2 supports 20M-50M, exceeds Stage 2 and reaches the goal of Stage 3; Vectoring supports 50M-100M, exceeds the goal of Stage 3 and reaches the long-term goal; G.FAST can realize 1,000M access and reach the ultimate goal of super broad band.
According to statistics, residential compounds which do not accord with optical cable refitting account for over 50%. Among existing copper cable networks in China, the service life of 82.6% of copper cables is no more than 20 years, the length of 70% of copper cables is no more than 1000 meters, so the use status and environment are nice. Therefore, increasing the band width of old residential compounds with innovative copper wire technologies is more advantageous than laying of new optical cables.
2014-01-13
1.6Needs in the optical fiber market are week and the degree of production capacity excess reaches 50%[Communication]
( According to statistics of CRU, the global optical fiber shipment was 251 mln core-km in 2012, and the Chinese market accounted for 49%, nearly a half of the global shipment. Mao Qian, Director of Optical Communications Committee, China Institute of Communications, said that China has built over 600 mln core-km of optical fiber, the optical fiber consumption in 2012 was 116 mln core-km, and China become the world’s largest optical fiber production consumption country.
According to data, the degree of China’s optical fiber production capacity excess will reach 50% in 2014, and optical fiber manufacturers in China may be faced with a difficult situation in a short period of time.
2013-11-29
1.7Needs for low-voltage wires may rise persistently [Wires & Cables]
( According to the state’s planning, China will construct 36 mln suites of security housings in the 12th 5-Year Plan, China’s newly constructed building area per year in future will be 1.6-2 bln sq.m., and the newly added building area by 2020 will be 20 bln sq.m. In 2010-2020, China’s total commodity housing sales area is expected to be about 6.753 bln sq.m. According to the present living standards, quantity of home appliances and power consumption of common residential housings in China, taking the coming new urbanization construction in China into consideration, if each sq.m. of residential housing needs 15-20 meters of electric wires, the total needs for electric wires of residential housings and non-residential housings in China will be about 65 mln km by 2015 and about 100 mln km by 2020.
2014-01-10
1.8Annual needs for aviation cables reach RMB 1.8 bln and the market is huge [Wires & Cables]
( Generally, aviation cables include: aviation power grid installation wires and power cables (accounting for about 80%), high-temperature fire-resistant cables for aircraft engines, aviation communication data cables and special aviation cables.
In 2013, China planned to launch 20 satellites, and the value of total market needs for high-performance space cables can reach RMB 900 bln-1.2 bln.
As introduced by China Aerospace Science and Technology Corp., china will finish about 30 launches per year at average by 2020, and the value of total annual market needs for high-performance space cables can reach about RMB 1.4-1.8 bln.
In 20 years, the total output value of civil aviation cables will exceed RMB 11 bln, and the conservatively estimated annual growth rate will be about 15%-20%.
2014-01-10
1.9China’s output of power cables in Jan.-Nov. 2013 [Wires & Cables]
( In Nov. 2013, China produced 3.8702 mln km of power cables, decreased by 0.95% over the same period of last year; in Jan.-Nov. 2013, China produced 37.8721 mln km of power cables totally, increased by 5.95% over the same period of last year.
2014-01-04
1.10New fruits of research on superconductive wires and cables are expected to be put into use in 2020 [Wires & Cables]
( Reportedly, the research team of NEDO and Furukawa Electric, etc, issued an announcement that they have developed the world’s most advanced superconductive cables, which can transmit high voltage equal to about 2 times of the voltage that previous superconductive cables can transmit.
The research team said: the power consumption of emerging countries in Asia is expected to grow, and the superconductive cable can be applied in cities in emerging countries in Asia and Japan. The transmission loss of the new cable is expected to be below 1/4 of the transmission loss of common copper cables.
2014-01-02
1.11Key application areas of HTS (high-temperature superconductivity) cables [Wires & Cables]
( 3 key application areas of HTS cables in future:
Urban underground transmission cables: If HTS cables replace existing conventional cables, the transmission capability can be increased by 3-5 times when the volume of existing urban underground cable duct remains unchanged.
Heavy-current bus-bar for power plant, transformer substation and metal smelting: HTS cables can reach 2 goals at the same time: reduce Joule loss and bus space.
Power transfer of distributed power supply: The combo application of HTS cables and superconductive magnetic energy storage can realize power exchange with adjacent power grids.
2013-12-31
1.12Ministry of Housing and Urban-Rural Development issued the new standards, and the wire and cable industry is faced with transformation and upgrading [Wires & Cables]
( On Dec. 16, 2013, Ministry of Housing and Urban-Rural Development issued 2 new standards of building cables. The standards required that the service life of building wires and cables should be 70%, the same as the life of housings. Therefore, building wires and cables are faced with transformation and upgrading.
Industrial experts think that Ministry of Housing and Urban-Rural Development should segment the wires and cables for buildings into heat-resistance, fire-retardant, refractory, low-smoke and halogen-free cables and anti-mouse cables, etc, but not only require that “building wires and cables should have the same service life as buildings”.
2013-12-31
1.13Development of new energy drives needs for related cables [Wires & Cables]
( According to the state’s <Middle and Long Term Planning of Renewable Energy> and <Middle and Long Term Planning of Nuclear Power>, wind energy, solar energy, nuclear energy and other new energies will be rocketed in the next decade, and there will be huge needs for wind energy cables, photovoltaic cables, nuclear cables and other special cables.
With China’s fast development of new energy, a lot of supporting cables for new energy are needed; in a quite long time, the market will be oriented by cables for wind power generation, cables for nuclear power station, cables for solar power generation and other special cables.
2013-12-31
1.14The suspension of ultra high voltage project may result in drop of needs for cables for power grid [Wires & Cables]
( SGCC invested RMB 3000 bln into ultra high voltage grid construction, but the assessment is overdue, which is an embarrassment. Wires and cables are an important part of power grid construction, and the suspension of ultra high voltage grid construction may affect needs for cables for power grid.
From 2009, the proportion of power (grid) cables in the wire and cable market size in China has been declining gradually, from 21.5% in 2009 to 15.1% in 2012. The proportion is still expected to drop to 14.1% in this year and to 7.8% by 2020.
Ying Guoping, a senior expert of the cable industry, said that SGCC bought 3,783 km of 110(66) kv crosslinked cables in 2013, slightly less than in 2012. China Southern Power Grid, the 5 power generation groups and local projects still use about 10000 km of crosslinked cables of 110(66)kV or above totally in this year, slightly less than in last year.
2013-12-31
1.15China’s Import and export of wires and cables in Q1-Q3 of 2013[Wires & Cables]
( According to customs data, the total import volume of wires and cables was 220160 tons and the total import value was RMB 4.54 bln, respectively increased by -1.3% and 12.21% over the same period of last year.
Judged by the growth of quantity, the growth rate of “electric conductors, rated voltage>1,000v” over the same period of last year was over 50%, which was outstanding. The situation indicates that China still has large needs for high voltage cables, but has relatively weak needs for import of low voltage cables. Therefore, low voltage cables are excessive in China.
2013-12-31
1.16The market size of 160 kv DC cables may reach RMB 100 bln [Wires & Cables]
( Flexible DC electricity transmission has become the world’s acknowledged best technical solution for grid connection of wind power. In comparison with conventional DC electricitytransmission, when the capacity is between 1000 and 1 mln kw, especially for internal interconnection of offshore wind power plants far from the coast, flexible DC electricity transmission technology can save investments by over 10%. According to primary calculation, the market size of flexible DC electricity transmission in the world will be over RMB 100 bln in the world in the next decade.
2013-12-30
1.17The ecological output value of smart appliances will reach 1000 bln [Smart Home]
(Investment Brief) On the 15th, Google announced to acquire Nest, a smart home equipment company, with USD 3.2 bln, which indicated that Google has decided to enter the smart home equipment market and its strategy in the field of smart equipments has been very clear. Apart from Google, many home appliances in China prepare to enter the smart home equipment market.
With the fast development of Internet technologies, the trend of networked home appliances will be irreversible, and the ear of smart appliances has come. Forecasted by industrial people, the ecological output value of smart appliances will be rocketed from 5 bln in 2010 to 1000 bln by 2020, the market size of smart terminals will grow to 800 bln by 20 times in 10 years.
2014-01-17
1.18In 2015, the PFTTH market size will RMB 3.535 bln [FTTH]
( In Jan.-nov. 2013, the quantity of newly added FTTH families exceeded 65 mln in China, and the total quantity reached 160 mln.
According to analysis of PFTTH terminal users’ needed configurations, the power communication equipment types of PFTTH are classified into: OLT, ONU, POS and related optical distribution equipments (central control chamber optical distribution cabinet and optical distribution case), etc. According to comprehensive comparative analysis of already built-up residential compounds, investments into power communication equipments account for 67% of the total investments.
Analysis of market needs for OLT: In PFTTH, OLT is divided into 3-net combo OLT master unit and power information collection OLT master unit. Among pilot residential compounds, the investment into OLT in Samenxia Shubei Compound is RMB 256,000 and the investments into OLT of Zhongshi Junjing Compound is RMB 412,000. Total investments into the 2 pilot residential compounds are respectively RMB 3,482,368 and RMB 5,732,597.