The price of wire and cable is closely related to the price of materials

The price of wire and cable PVC is closely related to the price of materials

1. It is the price of raw materials that keeps rising. Due to the fierce competition in the currency market, it is difficult to raise the price of cable products, and it is difficult for enterprises to survive. The main raw materials for the wire and cable industry are copper and aluminum. Although the prices of copper and aluminum have fluctuated in recent years, they have continued to rise; coupled with the increase in energy, transportation costs and wages, the production cost of wire and cable continues to rise.

In order to maintain profits and maintain production, some enterprises have to cut corners, lower product standards, and even produce fake and shoddy products.

2. It is the lack of R&D investment and the lack of innovation ability. Some cable companies are eager for quick success and are busy developing production and increasing output. They are reluctant to invest capital and intelligence to develop new products, especially high-precision products; they do not pay attention to improving product quality and creating famous brands. The local cable companies lack independent intellectual property rights, the key technologies are controlled by others, and the development of high-end technologies and high-end products is slow. According to statistics, only 30% of domestic cable brands have reached the level accepted by the international currency market and can participate in competition.

Enterprises lack professional talents, graduates from relevant colleges and universities are reluctant to work in small and medium-sized cable companies, most employees of private enterprises have not received relevant professional training, there is a serious shortage of technical innovation talents, and most enterprises lack the investment of special funds for related product development and innovation. All lead to the lack of independent technological innovation of the current domestic cable manufacturers, and the contradiction of product structure is prominent.

3. It is the low-price bid that affects the healthy development of the cable industry, and downstream companies occupy a large amount of funds from upstream companies. In the bidding activities, downstream customers won the bids at low prices, and cable companies ordered national standard products to supply non-standard products in order to survive low-cost dumping.

The downstream customers of the industry are strong and large customers, occupying a large amount of funds of cable companies and affecting the normal operation of enterprises in the entire industry.

4. There are many qualifications for cable access to the network, and cable companies are overwhelmed. Wire and cable are essential products in various industries, and each industry has different requirements for cable performance or has its own focus. Therefore, various restrictions are put forward on the access of cable products to the network. Those who have not obtained the qualification for access to the network are not allowed to use the network, resulting in cable manufacturers every year. It takes a lot of manpower, material and financial resources to deal with these various qualification work.

For example, the most common cables need a production license, low-voltage wires need 3C compulsory certification, mining cables need coal mine system safety certification, indoor communication cables need a network access license from the telecommunications bureau, and TV cables need a radio and television department.

The network access license, the LAN cable for the computer network must have the network access license, the flame retardant and fire resistant cable must have the record approval certificate of the fire department, etc. What's more, the same product requires licenses for several user divisions at the same time. Enterprises are exhausted to obtain various network access qualifications, and the marketing expenses of products have greatly increased.