LONDON, September 8, 2017 /PRNewswire/ --
This year marks the 50th anniversary of the creation of the Association of Southeast Asian Nations (ASEAN) and the 20th anniversary of the Asian financial crisis. While the region has enjoyed almost uninterrupted economic growth over the last twenty years, metallic wire and cable consumption is still only 5% of the world total. There are a number of identifiable trends that suggest that growth should continue in the future.
Linking copper semis and wire and cable production
We estimate that ASEAN refined copper demand reached 1.0Mt in 2016 with Thailand followed by Indonesia the largest consuming countries. 74% of primary metal units are consumed by the region's 25 wirerod producers with the residual taken up by the brass mill sector.
Whereas in Western Europe integrated producer-fabricators such as Aurubis or stand-alone manufacturers such as La Farga dominate wirerod production, the ASEAN industry is generally associated with local downstream wire and cable operations. Many of these are fully or part-owned by Japanese wire and cable makers and feed into regional and global manufacturing and processing supply chains.
Drawing on information contained in the July 2017 edition of CRU's Wire and Cable Market Outlook, gives an insight into the make-up of the ASEAN metallic wire and cable sector. As the chart indicates, measured by conductor weight production was 855,100t in 2016 and is forecast to grow by 3.7% in 2017. Of last year's total, just over 720,000t was copper with 133,000t in the form of aluminium power cable. Indonesia and Malaysia were the two largest producing countries with low voltage energy cable, which accounted for 44% of the total, the most important product category.
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