Latest news indicates that the wire and cable industry is not staggering, but has good growth potential. This growth potential can be attributed mainly to increasing demand in the sectors of infrastructure development in Eastern European and the old Russian countries. These factors are also largely responsible for the good growth potential in Asia. Western Europe and North American markets have become quite matured and are under tremendous pressure due to higher fixed cost. As a result, North American suppliers are shifting base to Mexico as well as Central America, while the suppliers from Western Europe are shifting to the Eastern European countries.

PVC still continues to be the major material used, but Polyolefins are gradually snatching the market share from PVC. Fire hazards and other environmental issues are the two major driving forces responsible for the shift in the wire and cable industry from PVC to Polyolefins. World demand indicates 2/3rd share for PVC, expected to grow only at a modest rate of 1%. PP, however, is expected to grow at 5% and the Polyethylenes at about 4 %. The shift from PVC to Polyolefins in the wire and cable industry is more prevalent in North America and Western Europe. In these countries, the share of Polyethylene is estimated at 75% of PVC.
Overall demand in wire and cable industry would grow at about 2% compared to the overall growth of GDP at 3-3.5%. Power sector will continue to consume major volumes. Telecom and IT will also gain share as they have become commodity markets. Some of the newer developments still continue to be in the areas of faster extrusion speeds (as high as 2500meters/minute) for telecom cables, PE low-tension cables with fire resistant characteristics.

(Information based on the Wire Show organized at Dusseldorf, Germany in April 2004)