Despite Trump’s tariffs, the cable industry remains resilient... Accelerating the push into the U.S. market.
Major domestic cable companies, such as LS Cable & System and Daehan Cable, recorded solid performance last year despite external uncertainties. Although U.S. President Donald Trump's protectionist policies have been strengthened, the global demand for electricity is rising rapidly, and investments in power infrastructure within the U.S. continue, leading to the view that the impact on the cable industry will be limited. According to industry sources on the 16th, LS Cable & System reported revenues of 6.766 trillion won and operating profit of 274.7 billion won last year, marking an 8.8% and 18.2% increase, respectively, compared to the previous year. Daehan Cable also achieved its best performance in 13 years, with revenues of 3.282 trillion won and operating profit of 114.6 billion won. The strong performance of major cable companies is largely attributed to the growth of the North American market. With increased investments in data centers in the U.S., the demand for power infrastructure has surged. The expansion of power grids, including the installation of ultra-high voltage cables and the replacement of outdated cables, has also contributed significantly to the performance boost. The U.S. Federal Energy Regulatory Commission (FERC) has projected that the growth rate of power demand in the U.S. will expand from 2.6% in 2023 to 4.7% by 2028. In particular, with the replacement of aging power infrastructure and the rapid increase in demand for AI and data centers, it is expected that power demand in the U.S. will rise from 8 terawatt-hours (TWh) last year to 652 TWh by 2030, an increase of more than 80 times. Domestic cable companies are actively entering the U.S. market. LS Cable & System plans to invest 1 trillion won this year to build the largest offshore cable factory in Virginia, U.S. The factory is set to begin mass production by 2028 and will feature a 200-meter-high power cable production tower. Daehan Cable surpassed 7.2 trillion won in total orders in the U.S. market last year, achieving its best performance since entering the North American market. The company plans to strengthen its competitiveness by securing multiple projects in the U.S. through its local subsidiary, T.E. USA. The rise in copper prices due to Trump's strengthened protectionism has also had a positive impact on the industry. Under price-linked contracts, an increase in the price of copper, a key raw material, also leads to higher cable export values. According to the London Metal Exchange (LME), copper prices (spot price) as of the 14th have risen by 4.8% to $9,812 per ton compared to the previous day. This increase is attributed to a surge in demand to secure supplies in anticipation of tariff measures, driving up the prices of industrial metals. The industry expects the supercycle (boom period) in the cable industry to continue until 2030. The "Stargate" project, an AI data center initiative driven by the U.S., is also expected to be a key factor in driving the expansion of power demand. This project will require substantial power facilities and infrastructure to proceed on a large scale. An industry insider stated, "As the demand for replacing aging power grids in the U.S. rapidly increases, the role of our companies in the local market is becoming more critical." He added, "Considering this, the cable industry is unlikely to face significant direct impact from Trump's strengthened protectionist policies." ChatGPT를 사용하여 번역한 기사입니다.
