News
Company News
Home - News - Company News
| Three major factors affecting the development of the domestic wire and cable industry |
| Time: 2019-10-10 View: 633 Burst: |
|
As the main carrier of power transmission, wire and cable are affected by domestic and foreign policies and raw material prices, and because it is widely used in electric power, construction, automobile, communications and other industries, it is also inevitable related to the development of these downstream industries. . 1. Internal and external policies In recent years, the state has vigorously carried out urban power grid construction, rural power grid reconstruction and urban rail transit construction, and issued a number of favorable policies. The development of these industries will bring a large number of orders to upstream wire and cable manufacturers. At the same time, due to the high fire caused by the quality of wire and cable, in order to prevent the recurrence of major accidents, the state's control over the wire and cable industry and product standards is becoming more and more strict, and new technical standards are continuously introduced. On the foreign side, on the one hand, China's cable industry exports a large amount, affected by the policies of international economic organizations. On the other hand, the endless anti-dumping investigations have also caused extremely adverse effects on China's wire and cable manufacturers. Second, raw materials The proportion of raw materials in the cost of wire and cable products is around, including copper, aluminum and plastics. According to relevant estimates, raw material prices increase by 5%, which is equivalent to a 4% reduction in profits. Copper and aluminum are the most important raw materials for wire and cable production. Their price rises and falls determines the profit of wire and cable companies. At the same time, from the current structure of China's copper demand, the power industry has the largest share, more than 50%, mainly used for wire and cable, transformers, switches, connectors and so on. Among them, wire and cable demand for copper accounts for more than 90% of the power industry. Therefore, the development of the wire and cable industry will undoubtedly affect the demand and price of copper. Third, the downstream industry General Secretary Xi Jinping of the power grid first proposed the new normal of China's economy in May 2014. The current policy is conducive to the construction of UHV. The 13 routes planned by the State Grid in 2015 are expected to drive more than 300 billion yuan of investment. In addition, the State Grid is also interested in using The Belt and Road Initiative promotes UHV construction, so the next five years will be the golden development cycle of the UHV industry, and wire and cable companies will also benefit greatly. Recently, relevant media reported that in the next five years, China will enter the golden age of ultra-high voltage development, which will enable China's wire and cable market to grow at an annual rate of 8-9%. With the continuous high-speed railing of the high-speed rail and the continuous improvement of urban rail transit, this provides a market for the lines, winding wires, special optical cables and data transmission cables for rolling stock. In addition, China's highways and railways will gradually step into information, and the demand for fiber-optic cables is increasing. Wire and cable companies have much to offer. The development of wind power in offshore wind power countries has spanned from the “orderly development of wind power” in the year to the “strong development of wind power” in 2015. Wind power is expected to rise to the status of the main body of energy structure adjustment in the future. As an important part of wind power projects, offshore wind power will surely drive the annual demand for submarine cables to rise. In addition, the technical content of special cables for offshore wind power is relatively high, which will also encourage wire and cable companies to continuously develop new technologies and enhance their competitiveness. In addition, with the development of new energy industries such as new energy vehicles and photovoltaics, real estate industry, nuclear power, aviation, communications, etc., their demand for wire and cable will also increase, and the development of these industries will also It has a profound impact on the wire and cable industry. |
