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Sinopec Petrochemical Enterprises: Domestic High-Grade Cable Insulation Materials for China Wire & Cable Import Substitution

China’s wire and cable industry is characterized by slowing growth, intensified market competition and industrial structural optimization. In-depth application of intelligent manufacturing and green low-carbon technologies delivers new momentum for industrial transformation and upgrading. The domestic market scale reached 1.35123 trillion RMB in 2024, rising by 4% year-on-year.

China ranks as the world’s largest wire and cable manufacturer. Its total output hit 65.31 million kilometers in 2024, a 5.3% year-on-year increase, and the figure is projected to grow to 68 million kilometers in 2025 with a 4.1% year-on-year rise. Export performance remained robust in 2024, with export volume jumping 19.2% year-on-year. Export destinations cover Southeast Asia, the Middle East, Europe and other global markets, generating total export revenue of 155 billion RMB.

Cable Insulation Base Materials

Types of Raw Materials

Cable insulation base materials serve as core fundamental materials for manufacturing cable insulation layers. Based on application scenarios and performance indicators, mainstream polymer raw materials include Low Density Polyethylene (LDPE), Linear Low Density Polyethylene (LLDPE), High Density Polyethylene (HDPE), Polypropylene (PP) and Polyvinyl Chloride (PVC).

Four Core Material Properties

  1. Electrical Insulation Performance: Block current leakage and guarantee safe power transmission.
  2. Mechanical Protection: Offer support and buffering for internal conductors to resist tensile force, extrusion, bending and other mechanical stresses.
  3. Environmental Resistance: Withstand extreme temperature and humidity fluctuations, ultraviolet radiation, chemical corrosion and other harsh external conditions.
  4. Process Compatibility: Adapt to various cable production processes such as extrusion, injection molding and wrapping.

Star Products of National Petrochemical Manufacturers

Only a handful of domestic enterprises including Shanghai Petrochemical and Qilu Petrochemical can stably produce base materials for cables above 35kV voltage level.

Shanghai Petrochemical’s J182B high-voltage cable base material, produced by its No.2 high-pressure polyethylene unit, achieved stable application in 35kV power cables and was further promoted to 110kV projects, with upgraded variant J182C developed subsequently. The enterprise deepened strategic cooperation with leading downstream clients and jointly formulated a complete technical specification system covering material performance standards and logistics transportation plans through production, sales, research and application collaboration. Multiple rounds of sample testing, process parameter optimization and production unit revamping greatly improved cleanliness and batch stability of the product series, effectively lifting the qualified product rate of downstream ultra-high voltage cable materials.

Qilu Petrochemical: High-Voltage Cable Insulation Base Materials Inject Strong Chinese Momentum into Power Grid Construction

Qilu Petrochemical’s high-voltage cable insulation base materials feature high cleanliness, excellent processing and electrical performance and stable product quality. The products break bottlenecks of key "stuck neck" materials in China’s power transmission sector, safeguard stable industrial and supply chains for domestic high-voltage cables, provide solid support for offshore wind power development and national energy transition, and deliver robust Chinese driving force for power grid infrastructure.

R&D and Production Practices

Qilu Petrochemical set up a special research team in 2022 to tackle indicators including molecular weight distribution required for high-voltage cable insulation materials. Repeated adjustments and lab tests solved technical defects including low viscosity, poor roundness and scorching tendency during high-voltage cable processing, greatly lifting overall product performance. The company realized mass production of J182A/A1/B/C high-pressure polyethylene series. It also created an integrated packaging solution combining shared pallets, FFS film and cold shrink stretch sleeve film to upgrade product packaging grade and cleanliness.

To advance upstream-downstream integration, Qilu Petrochemical established a joint venture Qilu High Voltage Insulation Material Co., Ltd. with Qingdao Han Cable. Base materials from Qilu Petrochemical are directly transported to insulation material production lines via pipelines to realize full enclosed production.

High-voltage cables manufactured with Qilu Petrochemical’s insulation base materials have been deployed in numerous major power projects across Guangdong, Guizhou, Shaanxi, Shandong and other provinces. The 330kV ultra-high voltage cable completed grid-connected operation, marking the first industrial application of domestic base materials under this voltage grade.

Customer Feedback

Since 2022, Qingdao Han Cable has purchased thousands of tons of high-voltage cable insulation base materials from Qilu Petrochemical. The materials boast outstanding mechanical strength, scorching resistance, ultra-high cleanliness and stable quality, with electrical performance ranking top tier nationwide. Insulation materials made from Qilu’s feedstock are widely adopted for various high-voltage cable products by manufacturers nationwide and receive consistent positive recognition. ——Factory Director, Insulation Material Division, Qingdao Han Cable

Zhongke Refining & Chemical: EVA Cable Shielding Material Gains Recognition from Multiple Industry Leaders

Ethylene Vinyl Acetate Copolymer (EVA) UE 2806 delivers outstanding flexibility, high elasticity and superior low-temperature performance without brittle cracking under cold environments. It also features favorable processability to evenly wrap insulation layers, balance electric field distribution and suppress partial discharge, making it an ideal raw material for cable shielding compounds.

R&D and Production Practices

China’s cable material market was long monopolized by foreign brands with high import prices and long delivery cycles. Leveraging its high-pressure autoclave EVA polymerization unit, Zhongke Refining & Chemical launched research and development of cable shielding materials.

The R&D team overcame core technical challenges including unstable VA content and inconsistent product performance caused by temperature and pressure fluctuations inside reactors, as well as contradictions between low vinyl acetate content and high melt index. Through systematic reaction kinetic analysis, optimized initiator injection strategies and precise temperature control across reaction zones, stable mass production of UE 2806 was realized. The process capability index (CPK) of two core indicators — vinyl acetate content and melt index — remains steady at 2.0, representing ultra-high process control precision and consistent batch performance.

Cooperating with South China Sinopec Chemical Sales, Zhongke Refining & Chemical launched customized "one customer, one scheme" services. Its EVA cable shielding material earned excellent market reputation and wide recognition from top industry players, realizing import substitution in high-end market segments.

Customer Feedback

Zhongke Refining & Chemical’s technical service team regularly visits cable manufacturers’ production sites to analyze specific performance demands and technical challenges together with our production and R&D teams. Timely optimization of production parameters resolves application problems, enabling full performance release of materials. Zhongke Refining & Chemical has evolved from a simple material supplier into a trusted technical solution partner. ——Senior Manager, A Leading National Cable Enterprise

Maoming Petrochemical: LDPE Cable Compound 2260H Realizes Full Import Substitution by Superior Performance

LDPE cable compound 2260H is a dedicated base material for medium and low-voltage power cable insulation. It features high cleanliness, premium electrical performance and favorable processability, maintaining stable performance between -50℃ and 90℃ with ultraviolet aging resistance exceeding 20 years. Adopting halogen-free flame retardant formula, the product has passed EU RoHS certification.

R&D and Production Practices

In 2019, accelerated domestic power grid construction prompted leading downstream cable manufacturers to build production bases in South China, yet 70% of raw materials relied on imports. Seizing this market opportunity, Maoming Petrochemical developed medium and low-voltage power cable insulation base material 2260H in joint research with South China Sinopec Chemical Sales. Targeted parameter optimization and precise control broke through bottlenecks restricting product quality and production capacity.

The enterprise completed unit upgrading in 2023, lifting production standards to match medical-grade material requirements. In 2024, ultra-high voltage cable insulation compound 2280H with higher crystallinity and lower impurity content was successfully developed. The total annual production capacity of Maoming Petrochemical’s cable material portfolio has surpassed 34,000 tons, with monthly output of 2260H hitting 3,000 tons in October this year.

The 2260H series has achieved a complete development path from import substitution to domestic standard formulation, from laboratory trials to ten-thousand-ton industrial production, and from initial customer doubts to industry benchmark status. Continuous upgrades toward higher voltage grades and greener formulations strengthen the competitiveness of China’s domestic cable industrial chain in global markets.

Customer Feedback

Maoming Petrochemical LDPE cable compounds 2260H and 2280H deliver excellent thermal aging resistance, strong chemical corrosion resistance and reliable processability, capable of fully replacing imported alternatives. The sales team adjusts product specifications flexibly according to our demands, and innovates a logistics plan combining wrapping film and shared pallets to guarantee product quality, boost loading efficiency and shorten delivery cycles. We look forward to deeper long-term cooperation. ——Procurement Manager, A Zhejiang Cable Manufacturer

Expert Perspective: Development Trends of New Cable Insulation Base Materials

Overview of China’s Wire & Cable Industry

Product Segmentation

Known as the "vascular and nerve system" of national economy, wire and cable products fall into five major categories classified by application scenarios and performance:

  1. Power Cables: For high-voltage power transmission, transformation and distribution circuits with voltage above 220V.
  2. Equipment Wires & Cables: Special cables for medical, mining and other scenarios under 1kV voltage.
  3. Bare Wires & Conductors: Applied to suburban trunk lines, rural power grids and switch cabinets.
  4. General Cables & Optical Fibers: Optical cables and data transmission wires supporting information industries and data center construction.
  5. Magnet Wires (Winding Wires): Used for motors, instruments and meters.

Industrial Competition Landscape

The industry contains over 10,000 manufacturers dominated by small and medium-sized enterprises, among which more than 3,000 companies have registered capital exceeding 10 million RMB. Market shares remain highly scattered without absolute market leaders, leading to fierce homogeneous competition.

Geographically, industrial clusters concentrate in eastern China, with the Yangtze River Delta as the core, supplemented by the Pearl River Delta and Bohai Rim. Jiangsu (3,500 manufacturers), Shandong (2,500 manufacturers) and Guangdong (2,000 manufacturers) rank top three nationwide. Each cluster owns distinctive advantages: clusters in Yixing (Jiangsu) and Hangzhou (Zhejiang) boast advanced technologies and complete supporting supply chains; the Pearl River Delta centered on Dongguan focuses on equipment cables and export business; industrial zones in Ningjin (Hebei) and Wuwei (Anhui) form featured strengths in power and equipment cables.

New Material Demand of China’s Wire & Cable Industry

Voltage grades for cable products are categorized as low voltage (below 10kV), medium voltage (10kV-35kV), high voltage (110kV-220kV), ultra-high voltage (500kV and above) and extra-high voltage (above 800kV).

Traditional Material Demand

  1. Polyethylene (PE) Series: Core insulation materials for cable manufacturing with different variants for differentiated scenarios. LDPE acts as key raw material for medium and high voltage cable insulation; domestic LDPE output exceeded 210,000 tons in 2024 against total demand of 617,800 tons, resulting in obvious supply shortage. LLDPE with outstanding mechanical performance is widely used for low-voltage cable insulation and sheaths. HDPE features strong corrosion resistance, suitable for underground and submarine cable applications.
  2. Polyvinyl Chloride (PVC): Low-cost and flame-retardant, commonly adopted for medium and low voltage cable insulation and sheaths. Its halogen content limits application in construction and new energy sectors with strict environmental standards.
  3. Ethylene Vinyl Acetate Copolymer (EVA): Excellent conductivity and flexibility improve cable anti-interference capacity, mainly used for cable shielding materials with steady market demand in smart grid and communication cable fields.

Special Material Demand

  1. Flame Retardant & Low Smoke Zero Halogen Materials: Rising fire safety standards for large buildings, subway transit and medical facilities drive robust demand for flame retardant cables. Low smoke zero halogen polyolefin flame retardant materials become mainstream solutions with low smoke and low toxicity during combustion.
  2. Weather & Extreme Environment Resistant Materials: Rapid expansion of new energy industries pushes up demand for weather-resistant compounds. Solar cables adopt cross-linked polyethylene (XLPE) modified materials for UV and temperature resistance; wind turbine cables use chloroprene rubber and ethylene propylene rubber elastomers to withstand salt mist and frequent torsion. Submarine cable base materials rely on water-resistant polymer composites including polyvinyl butyral (PVB) and polyurethane (PU).
  3. High Strength & Lightweight Materials: Breakthroughs in long-distance power transmission increase demand for lightweight, high-strength materials. Aramid fiber is applied to cable reinforcement layers to boost mechanical performance of submarine and aerospace cables thanks to its ultra-high strength-to-weight ratio.

High-End & Import Substitution Material Demand

  1. Ultra-High Voltage Cable Insulation Materials: Ultra-high voltage cables impose strict requirements on dielectric performance and cleanliness. Only a small number of domestic manufacturers including Shanghai Petrochemical and Qilu Petrochemical can produce high and ultra-high voltage base materials, while dedicated XLPE compounds still largely depend on imports.
  2. Smart Cable Materials: Smart grid construction generates demand for intelligent cables integrated with sensing and communication functions, which require optical fiber sensing materials such as quartz and conductive polymers like polyaniline for real-time monitoring of temperature and current. Such materials face high technical barriers, and domestic enterprises are still in key R&D stages.

Industrial & Application Development Trends

Industrial Development Directions

  1. Green Low-Carbon Transformation: Deploy energy-saving extruders and intelligent annealing equipment to lift energy utilization efficiency; develop thermoplastic elastomer (TPE) recyclable materials and build complete recycling systems for waste cables.
  2. Intelligent Upgrading: Intelligent manufacturing serves as core transformation driver. Deploy industrial robots and IoT systems for automatic control and full data traceability of core production processes; adopt simulation technology to optimize cable structure and material formula design; build cable health management systems via big data to realize predictive maintenance.
  3. High-End Product Transition: The industry shifts from blind capacity expansion to value-added development, with high and ultra-high voltage cables gradually replacing medium-low voltage products. Demand for insulation materials above 110kV is expected to reach 356,500 tons in 2025, among which 500kV compound demand hits 45,800 tons. The market share of special cables continues to rise, with new energy vehicle and aerospace cables as key layout targets.
  4. Higher Industrial Concentration: Stricter quality supervision and environmental policies trigger industry mergers and acquisitions. Leading enterprises accelerate integration supported by technology and capital advantages, fostering globally competitive giants. Listed companies’ total revenue share is projected to rise by 10-15 percentage points by 2027 compared with 2023.

Application Field Development Directions

  1. New Energy Industry: Rapid growth of offshore wind projects creates massive demand for salt-mist resistant long-distance submarine cables, with the domestic offshore wind cable market scale expected to exceed 20 billion RMB in 2025. Weather-resistant DC transmission cables become standard equipment for photovoltaic power stations, while Building Integrated Photovoltaics (BIPV) fuels demand for flexible solar cables. Energy storage systems require high-rate cycle-resistant cables matching lithium battery charging and discharging scenarios.
  2. Smart Grid Industry: Massive state investment in power grid digital transformation drives demand for composite intelligent power cables with data communication and environmental sensing capabilities. Continuous construction of extra-high voltage transmission projects pushes annual market growth of XLPE insulation materials and supporting accessories above 20%.
  3. Rail Transit Industry: Demand for special cable compounds keeps expanding. Low smoke zero halogen flame retardant cables are essential for power and control systems in subway networks; high fatigue and vibration-resistant cables are prioritized for high-speed rolling stock.
  4. High-End Manufacturing Industry: New energy vehicle cables must meet strict standards including heat resistance above 125℃, oil corrosion resistance and lightweight design, applied to power battery packs, drive motors and charging piles. Aerospace cables require ultra-lightweight and extreme environment adaptability, with R&D focus on titanium alloy conductors and polyimide insulation materials.

Suggestions for Wire & Cable Manufacturers

  1. Strengthen Independent R&D and Differentiated Layout: Increase R&D investment and establish industry-university-research cooperation platforms with universities and research institutes to accelerate technology commercialization. Top manufacturers leverage scale advantages to expand high-value products such as EV and aerospace cables, and transform from single material suppliers to full-lifecycle service providers covering cable design, installation and maintenance. Small and medium-sized enterprises focus on segmented niche special cables to avoid homogeneous price competition.
  2. Accelerate Intelligent Manufacturing to Cut Costs: Complete digital upgrading of production equipment, deploy industrial internet platforms to realize full-process digital control and flexible production, reduce labor and material loss. Build collaborative supply chain management systems to optimize procurement, production and logistics links for higher overall operational efficiency.
  3. Reinforce Industrial Self-Discipline and Standardized Market Order: Industry associations should guide market development, formulate unified product quality standards and certification systems, establish standardized enterprise credit evaluation mechanisms to create fair and orderly competition environment.

Suggestions for Petrochemical Enterprises

  1. Focus on High-End Materials and Complete Product Portfolio: Leverage integrated refining and chemical advantages to target high-value cable materials including ultra-high voltage XLPE compounds, low smoke zero halogen flame retardant PE and high-temperature resistant EVA shielding materials. Break core technical bottlenecks via dedicated unit optimization, develop benchmark products and provide customized material solutions for downstream clients.
  2. Deepen Upstream-Downstream Collaboration to Build Industrial Ecosystems: Establish integrated production, sales, research and application cooperation mechanisms with leading cable manufacturers, build joint laboratories to set demonstration cases for new cable material development and industrial application.
  3. Optimize Production Layout to Stabilize Supply Chains: Deploy production bases and warehouses near major industrial clusters in the Yangtze River Delta and Pearl River Delta, build joint logistics facilities with downstream partners, implement just-in-time supply services to shorten delivery distance and improve market response speed.
  4. Boost Brand Building and Expand Global Market Share: Strengthen brand promotion of high-end cable materials, participate in international standard formulation committees and industrial associations to raise global brand recognition. Tap fast-growing cable markets in Southeast Asia, the Middle East and other regions via technology licensing, strategic alliances and overseas factory investment to realize global industrial layout.