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The risk of gas supply shortages is spreading from Europe to Japan to impact rubber gland

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The risk of gas shortages is spreading from Europe to Japan as the conflict between Russia and Ukraine continues to simmer.

Concerns in Japan about the "lack of gas" have grown since the end of June, when Russia announced it would set up a new company to take over operations of Sakhalin II. In desperation, the Japanese government recently frequently sent help signals to the United States and Australia, hoping to obtain energy supplies from the two countries to make up for Japan's potential energy gap. However, the distant will not quench the near thirst, and the US and Australia do not seem to have much desire to help Japan in its current predicament.

July 25, kyodo news agency reported that the Japanese economy, trade and industry, said although the Japanese has not immediately appear the situation of gas supply and demand of nervous, but under the background of the conflict between Russia and Ukraine, Japan can sustain in Russia's far east oil and gas development project "sakhalin ii" the rights and interests of uncertainty, so the Japanese government will intensify the adoption of countermeasures to restrain gas demand.

Since the outbreak of the conflict between Russia and Ukraine, Japan has followed the footsteps of the US and Europe in imposing multiple rounds of sanctions on Russia. Not only that, Japan also actively cooperated with the United States, intent on suppressing the price of Russian oil in the international market. In response, Russia put Japan on the "unfriendly countries and regions list" and retaliated against Japan in the energy sector, intending to cut off natural gas supplies to Japan.

On June 30, Russian President Vladimir Putin signed a decree requiring the establishment of a new company to take over the operation of "Sakhalin 2". The original foreign shareholders of the project should apply to retain shares in the new company within one month, and the Russian government will decide whether to approve it. Japan's Mitsui & Co. and Mitsubishi Corp. previously held 12.5 percent and 10 percent stakes in the project, respectively. The remaining foreign shareholder, Shell, has said it will pull out.

The news caused concern in Japan. By the Japanese industry organization composed of several gas company "Japan gas association, said" considering "sakhalin ii project faces all sorts of uncertainty may affect gas imported from Japan, association recommends that the Japanese government to consider the solution as soon as possible, including looking for alternative sources of natural gas imports, coordinate between the gas company we adopted, Even when the supply is tight, the gas demand is limited.

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Yueqing Bolun Electric is an industrial and trade enterprise specializing in the resarch & development of Cable gland , Explosion-proof armored connector, Marine stuffing box,Hose connector and other cable accessories.

The rubber gland industry background

The rubber gland industry background Wire and cable are widely used in all departments of the national economy, which is the fundamental guarantee for the regular operation of the modern economy and society. The development level of the wire and cable industry is also a symbol and epitome of a country's manufacturing level. Europe, America and Japan, such as developed countries, early industrialization at the end of the 20th century, have formed a mature cable industry chain . Contributed to most of the global rubber gland capacity and demand at that time, still occupied an important position in the worldwide supply and marketing, leading the industry's development and monopolizing the global high-end market.

T he global demand of rubber gland

According to the use scenario, the commonly used international rubber gland divide into two categories indoors and outdoor. Outdoor rubber gland due to wind and snow and environmental climate, working conditions, so its structure is more complex. Indoor rubber gland working conditions are better and do not need a waterproof device. The cable core can directly connect with equipment. At present, indoor and outdoor rubber gland for 10KV and below and outdoor cables sometimes use metal rubber gland . According to data released by CRU, in 2021, global demand for metal rubber gland (conductor weight) slowed significantly due to weak demand in China, with 19 million tons in 2021, up nearly 1% year on year. CRU reported in December 2022 that the global market for rubber gland except in China would shrink by almost double digits in 2021 due to the impact of the pandemic.While market demand is recovering, early weakness will drive double-digit declines in multiple regions in 2021. As a result, the global need for insulated metal rubber gland will shrink by about 5% -6% yearly. According to preliminary estimates, the global demand for metal-insulated wires and cables will fall to 17.86 million tons in 2022.

The global market of rubber gland may be shrinking

The wire and cable market size are above 20 billion dollars as one of the most important manufacturing industries globally. From 2018 to 2021, the market size of the global wire and cable industry generally showed a trend of fluctuation. According to the data released by CRU, the market size of the international metal cable industry was $161 billion in 2019.Up slightly to $172 billion in 2020. The global market size fell slightly to $164 billion in 2021 due to falling demand in China. According to preliminary estimates, the global metal rubber gland market in 2022 was affected by the epidemic, shrinking demand, with market size of $152 billion.

The market share of rubber gland

In recent years, the economic growth of emerging countries and other Asian countries has been fast. The production focus of the world wire and cable production has shifted to Asia, which has driven the rapid development of the wire and cable industry in China, Vietnam, the Philippines and Egypt in the Middle East.According to the report released by the CRU, the outbreak in 2021 led to different effects on the world's other parts except for China. Combined with multiple market data, we summarize the overall development of the power cable industry in the global scope. Manifested by the rapid rise in Asia, the slight decline in America, and the unstable growth in Europe in recent years, which is greatly affected by economic and political factors. The Asia-Pacific region accounts for about 49% of global consumption, while Europe and the Americas account for 15% and 10%.

The Global Market Distribution of rubber gland

After years of developing the wire and cable industry in developed countries, especially in the face of fluctuations in raw material prices, small enterprises gradually withdrew from the market, and the industrial concentration increased significantly. The top 10 American cable manufacturers (GM, Best, Corning, South, etc.) occupy about 70% of the market share. Seven Japanese cable enterprises (such as Wuhe, Sumitomo, Tengcang, Hitachi, Showa, etc.) account for more than 65% of the market share. Five French cable enterprises (Nexan, etc.) occupy the French market turnover, occupying more than 90% of the French market share. And China's entire wire and cable industry concentration is deficient. CR10 is 17.7%.

Emerging markets for rubber gland

In 2021, the global rubber gland market was in turmoil due to the COVID-19 pandemic. As the global economy recovers, China invests in new energy and infrastructure construction, and the global rubber gland market is expected to recover in 2021. The global metal rubber gland market will rebound to $180 billion in 2022.However, in the medium term, the global wire and cable industry will return to healthy growth, driven by government and private investment, after the end of COVID-19 but slowing slightly from the previous five years. Among them, represented by Africa and Southeast Asia, the rapid development of emerging market economies will accelerate their construction, infrastructure, utilities, and industrial development activities. These activities will provide the substantial upward potential for emerging market wire and cable demand. Emerging market demand growth will continue to support the recovery and growth of global demand.

According to the CRU forecast, after 2023, the international wire and cable industry market demand will recover to the level of 2019. The international wire and cable market is expected to expand at an annual growth rate of 5% from 2022 to 2026. The global rubber gland industry market will reach $230 billion in 2026.

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Yueqing Bolun Electric is an industrial and trade enterprise specializing in the resarch & development of Cable gland , Explosion-proof armored connector, Marine stuffing box,Hose connector and other cable accessories.

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