Soaring costs, war, supplies: cable companies worried about 2022

“Despite the increase in raw materials and the extension (of) supply times, the horizon has cleared up during the year 2021”, underlines Sycabel, professional union in the sector, in a press release.

The activity of manufacturers of electrical and communication wires and cables as well as their associated accessories "returned to pre-health crisis levels, with turnover standing slightly above 3,4 billion euros. euros, an overall increase of 24,7% compared to 2020 and 12,4% compared to 2019", he indicated.

"In the field of energy transport networks, investments in France have contracted sharply, unlike exports which are increasing and returning to their 2019 level", indicates Sycabel.

Conversely, "energy distribution cables have returned to volumes equivalent to those of 2019 on the national market while export results have deteriorated", he added.

In the field of cables for construction and industry, "2021 ended with a promising trend": "cables dedicated to construction recorded a volume 7 points higher than in 2019 in mainland France, although the housing construction market remains at half mast,” said the trade union.

On the other hand, data cables had a bad year compared to 2019. Finally, fiber optic telecommunications cables, despite a rebound of 25 points compared to 2020, are down 17 points compared to 2019.

For 2022, "given the preponderant weight of raw materials and the impact of the cost of energy on the cost price of cables, the acceleration of price increases continues to affect Sycabel members very hard" .

“The LME aluminum price has taken more than 50% in one year and has seen its value double since 2020”, underlines the union in particular, even if the resurgence of Covid-19 cases in China has weighed on prices.

Finally, in addition to its effects on energy prices, the war in Ukraine is causing industrialists "uncertainties about lead times and supply capacities, in particular, as regards the cable industry, gas , aluminum, nickel and wood".