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CABLE INDUSTRY TRENDS
The slowdown starting in 2011 continued in 2013, albeit with major differences between
geographical areas and between the various market segments. Stable or low growth for high
value-added businesses, special cables for the OEM market and the offshore oil industry.
The world cable market was still sluggish in 2013, in line
with the slowing trend underway since 2011, reflecting the
uncertainty of the macro environment and the reduction in
investments primarily in Europe. However, there were major
differences within the industry both geographically and
between the various market segments.
In geographical terms, the negligible increase in global
cable demand was driven by high-growth regions, such as
the Middle East, Asia and, albeit to a lesser extent, South
America. In fact, these regions saw continued investments
to expand and upgrade infrastructures and buildings in
response to growing demand by industrial operators and local
communities. In the United States, the slowdown in the pace
of economic recovery was reflected in a modest growth in
demand. Lastly, in Europe the recessionary scenario and debt
crisis in several EU countries further exacerbated not only
the construction market but also infrastructure investment
and energy consumption, resulting in a general reduction in
demand for energy cables and systems.
Even the various market segments displayed great diversity
in 2013. On the one hand, performance by higher value-added
businesses was stable or marginally better; this was the
case for high and extra high voltage submarine cables for
offshore wind farm connections in Europe, for special cables
for OEMs and for cables for the offshore oil industry, whose
major players increased their investments on the previous
year, on the strength of the high average price of Brent crude,
reaching around USD 109 a barrel in 2013. On the other hand,
demand declined for power distribution cables, especially
in Europe, and for building wires, in line with the general
slowdown of this market, particularly in countries like Italy,
Germany, France, Spain and Australia. Demand for special
renewable energy cables (onshore wind, solar) was sharply
down, especially in Europe, due to the absence of incentives to
support investments in this sector. As for optical fibre cables,
global growth in 2013 was exclusively attributable to countries
in Asia, particularly China and India, while demand fell steeply
in the United States, due to the ending of incentives, and in
Europe, albeit by somewhat less.
Lastly, demand for copper telecom cables continued to fall, in
line with the trend since 2004 that has benefited optical fibre
cables.
