As the main carrier of power transmission, wires and cables, power cable In addition to being affected by domestic and foreign policies and raw material prices, it is also inextricably linked to the development of these downstream industries because it is widely used in power, construction, automobile, communications and other industries.
Internal and external policies
In recent years, the state has vigorously carried out the construction of urban power grids, rural power grids and urban rail transit, and issued a number of favorable policies. The development of these industries will bring a large number of orders for upstream wire and cable manufacturers. At the same time, due to the high level of fire caused by the quality of wires and cables, in order to prevent the recurrence of major accidents, the national control over the wire and cable industry and product standards has become increasingly strict, and new technical standards have been introduced.
In foreign countries, on the one hand, China's cable industry has a large export volume, which is also greatly affected by the policies of international economic organizations; On the other hand, the endless anti-dumping investigations have also had a very adverse impact on China's wire and cable manufacturers. The proportion of raw materials in the cost of wire and cable products is about 80%, including copper, aluminum and plastics. According to relevant estimates, every 5% increase in the price of raw materials is equivalent to a 4% decrease in profits. Copper and aluminum are the most important raw materials for wire and cable production. The rise and fall of their prices determine the profits of wire and cable enterprises. At the same time, from the current structure of China's copper demand, the power industry accounts for the largest share, more than 50%, which is mainly used for wires and cables, transformers, switches, connectors, etc. The demand for copper for wires and cables accounts for more than 90% of the power industry. Therefore, the development of power cable industry will undoubtedly affect the demand and price of copper.
