According to a survey conducted by the China Electrical Equipment Industry Association, the industry has been fully warmed up and has multiple positive factors, but the problem of overcapacity has gradually surfaced.
A report provided by the China Electrical Equipment Industry Association recently reported that the overcapacity problem of the cable industry in the low-end products is outstanding. In particular, despite the fact that the production capacity of the cross-link cables has been seriously oversupplied everywhere, a large number of vertical tower production lines have been introduced. Duplicate construction, waste of funds, idle capacity and other issues.
At the same time, the high-end products of China's electrical appliance industry, including ultra-high-voltage cables and special-purpose cables, have insufficient capacity, resulting in the import of most products or raw materials.
"Obviously, this excess capacity is structural," said Cheng Renchao, a senior economist at the Industry Development and Consulting Department of the China Electrical Appliance Industry Association.
"Overcapacity is not just the cable industry." Wang Yu, director of the industry development and consulting department of the China Electrical Appliance Industry Association, said that the capacity of power generation equipment also exceeds demand.
According to the national plan, from the present to the end of the “Twelfth Five-Year Planâ€, China will add 70 million to 80 million kilowatts of demand each year, but only three domestic power generation equipment, including Harbin Electric Appliances, Shanghai Electric Appliances, and Dongfang Electric Group, will be produced in China. The company's production capacity reaches 9,000 kilowatts.
The effect of overcapacity in the transformer industry on the industry is quite representative. According to statistics from the China Electrical Equipment Industry Association, China's transformer production capacity is roughly 1.5 times the world's total demand. Some transformer manufacturers report that the final price of some transformer products is only 80% of the cost of raw materials.
In the tendering and bidding market, the domestic power industry has used the lowest bids for tendering in the electricity industry, which has also led to the competition for price cuts by equipment manufacturers. While Siemens and other international electrical industry giants will be required to account for production costs when bidding, they would rather not pick up the mark if they lose money.
Cheng Renchao believes that the emergence of overcapacity problems is mainly due to excessive demand and no constraint on production capacity.
Electricity is an important barometer of economic development. A national economy with a better overall situation provides a stable and stable environment for the development of the electrical industry. According to statistics, in the first three quarters of this year, China's electrical industry recovered its strong growth momentum, accumulatively achieving a total industrial output value of 2.6 trillion yuan, an increase of over 30% over the same period of last year; the cumulative product sales rate in the first three quarters was 97.05%. It has also remained above 96%.
In terms of foreign trade, regardless of the import and export volume, export delivery value, or trade surplus of China's electrical appliances industry, a number of indicators have surpassed the best level of 2008 before the international financial crisis in the second half of the year.
During the first four years of the “Eleventh Five-Year Plan†period, the installed capacity of China's power generation equipment increased rapidly from 520 million kilowatts in 2005 to 870 million kilowatts in 2009, an average annual increase of 13.7%. The strong demand for power generation equipment led to power generation equipment. A substantial increase in production.
During the 12th Five-Year Plan period, the planning and construction of smart grids will be a key point. It can be predicted that the market demand formed by it will remain strong, and the development of the electrical industry industry will be full of impetus.
A report provided by the China Electrical Equipment Industry Association recently reported that the overcapacity problem of the cable industry in the low-end products is outstanding. In particular, despite the fact that the production capacity of the cross-link cables has been seriously oversupplied everywhere, a large number of vertical tower production lines have been introduced. Duplicate construction, waste of funds, idle capacity and other issues.
At the same time, the high-end products of China's electrical appliance industry, including ultra-high-voltage cables and special-purpose cables, have insufficient capacity, resulting in the import of most products or raw materials.
"Obviously, this excess capacity is structural," said Cheng Renchao, a senior economist at the Industry Development and Consulting Department of the China Electrical Appliance Industry Association.
"Overcapacity is not just the cable industry." Wang Yu, director of the industry development and consulting department of the China Electrical Appliance Industry Association, said that the capacity of power generation equipment also exceeds demand.
According to the national plan, from the present to the end of the “Twelfth Five-Year Planâ€, China will add 70 million to 80 million kilowatts of demand each year, but only three domestic power generation equipment, including Harbin Electric Appliances, Shanghai Electric Appliances, and Dongfang Electric Group, will be produced in China. The company's production capacity reaches 9,000 kilowatts.
The effect of overcapacity in the transformer industry on the industry is quite representative. According to statistics from the China Electrical Equipment Industry Association, China's transformer production capacity is roughly 1.5 times the world's total demand. Some transformer manufacturers report that the final price of some transformer products is only 80% of the cost of raw materials.
In the tendering and bidding market, the domestic power industry has used the lowest bids for tendering in the electricity industry, which has also led to the competition for price cuts by equipment manufacturers. While Siemens and other international electrical industry giants will be required to account for production costs when bidding, they would rather not pick up the mark if they lose money.
Cheng Renchao believes that the emergence of overcapacity problems is mainly due to excessive demand and no constraint on production capacity.
Electricity is an important barometer of economic development. A national economy with a better overall situation provides a stable and stable environment for the development of the electrical industry. According to statistics, in the first three quarters of this year, China's electrical industry recovered its strong growth momentum, accumulatively achieving a total industrial output value of 2.6 trillion yuan, an increase of over 30% over the same period of last year; the cumulative product sales rate in the first three quarters was 97.05%. It has also remained above 96%.
In terms of foreign trade, regardless of the import and export volume, export delivery value, or trade surplus of China's electrical appliances industry, a number of indicators have surpassed the best level of 2008 before the international financial crisis in the second half of the year.
During the first four years of the “Eleventh Five-Year Plan†period, the installed capacity of China's power generation equipment increased rapidly from 520 million kilowatts in 2005 to 870 million kilowatts in 2009, an average annual increase of 13.7%. The strong demand for power generation equipment led to power generation equipment. A substantial increase in production.
During the 12th Five-Year Plan period, the planning and construction of smart grids will be a key point. It can be predicted that the market demand formed by it will remain strong, and the development of the electrical industry industry will be full of impetus.
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