As the primary carrier of transmission, wire and cable is not only affected by domestic and international policies and raw material prices, but also inherently linked to the development of downstream industries such as electricity, construction, automotive, and telecommunications due to its extensive application across these sectors.

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In recent years, the state has vigorously promoted the construction of urban and rural power grids and urban rail transit, implementing a series of preferential policies. This industry's development is expected to bring a surge in orders to upstream wire and cable manufacturing enterprises. Simultaneously, due to frequent fires caused by wire and cable quality issues, the state has been enforcing increasingly stringent controls on the wire and cable industry and product standards, introducing new technical specifications to prevent major accidents from recurring.

Abroad, on one hand, the export volume of China's cable industry is massive, affected by the policies of international economic organizations; on the other hand, endless investigations are also bringing adverse impacts to Chinese cable manufacturers.

Raw Materials

In the cost management of cable company products, the proportion of raw materials, including copper, aluminum, and plastics, accounts for about 80%. According to relevant data, a 5% increase in raw material market prices equals a 4% decrease in profit. Copper and aluminum, as key raw materials for wire and cable production, determine the profit of wire and cable enterprises. Meanwhile, analyzing the current demand structure of copper materials in China, the power and electronic industry occupies more than half of the national economy, primarily involving wire and cable, transformers, switches, and connectors. In these industries, wire and cable accounts for over 90% of the copper demand in the power industry. Therefore, the development of China's cable design industry undoubtedly affects the demand and price of copper.