Analysis of the problems and development prospects of China's wire and cable ind

The development dilemma of the wire and cable industry:

(1) Large fluctuations in raw material prices

The main raw materials of wire and cable products are copper and aluminum, which account for about 80% of the product cost. Commodities such as copper and aluminum are affected by factors such as the macroeconomic situation, industrial policies, and production conditions in major producing countries. In recent years, market prices have fluctuated significantly, which has adversely affected the normal production and operation of wire and cable companies. The sharp increase in the price of major raw materials may cause a shortage of liquidity for companies; and the continued decline in the price of major raw materials will reduce the value of the company's inventory products and increase the business burden of the company.

(2) The industry has a large demand for funds, and financing is difficult

The wire and cable industry has the typical characteristics of "materials, heavy, and light". The main raw materials represented by copper have high value and obvious price fluctuations, which require a lot of capital. However, most of the wire and cable companies are small and medium-sized enterprises and it is difficult to obtain government Financial support or large bank loans. If a wire and cable manufacturer fails to improve its own management level, there is a situation of low capital operation efficiency, which will adversely affect its production and operation.

Development prospects of wire and cable industry:

(1) Continuous economic growth and the implementation of major national strategies bring development opportunities to the wire and cable industry

The wire and cable industry, as a necessary supporting development and advanced development industry in the construction of the national economy, its development speed is synchronized with or faster than the development speed of the national economy. At present, my country's total economic output ranks second in the world. In the future, the central government will continue to implement an efficient, sustainable and dynamic macro-control system to maintain steady economic growth. Benefiting from the country's long-term economic development plan, the demand for wire and cable products will grow steadily for a long time.

(2) The strengthening of supervision by regulatory authorities is conducive to increasing industry concentration and promoting the sound and sustainable development of the wire and cable industry

The state continues to strengthen the quality and safety supervision and special rectification of wire and cable products, prompting a group of small-scale wire and cable companies that lack core competitiveness to withdraw from the market, which will help companies with quality and brand core competitiveness to achieve good economic benefits, and further Increase industry concentration. The entire industry has started to shift from shoddy products and disorderly competition at low prices to quality, service, and brand competition, which will achieve sound and sustainable development.

(3) Demand in emerging fields and development of new energy technologies promote the development of special cables

In recent years, with the rapid development of my country's economy, many emerging fields have emerged, and the demand for special special cables has also increased day by day. Such as the construction of the national smart grid, the large-scale construction of wind power bases, the close implementation of nuclear power strategies, the development of new energy sources such as photovoltaics and solar thermal, and the development of emerging industries such as rail transit, aerospace, submarine power transmission, new energy vehicles and charging piles , Which naturally brings the corresponding demand for special cables and injects vigorous development vitality into the special cable industry. In addition, as the use environment of cables becomes more and more complex, the demand for special cables with functions such as high temperature resistance, extreme cold resistance, strong acid and alkali resistance, and termite resistance is gradually increasing.