As the primary carrier for 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 power, construction, automotive, and telecommunications due to its widespread application in these sectors.

Domestic and international policies

In recent years, the country has vigorously promoted the construction of urban power grids, rural power grids, and urban rail transit, implementing a series of preferential policies. The development of this industry will bring a surge in orders to upstream wire and cable manufacturing enterprises. At the same time, due to frequent fires caused by wire and cable quality issues, the government has been imposing increasingly stringent controls on the wire and cable industry and product standards to prevent major accidents from recurring, introducing new technical standards.

Abroad, on one hand, China's cable industry is experiencing significant export volumes, impacted by policies of international economic organizations; on the other hand, the endless investigations are also having a negative impact on Chinese cable manufacturers.

Raw Materials

Cable Company's raw material cost accounted for about 80% of its product cost management, including copper, aluminum, and plastics. According to relevant data calculations, a 5% increase in raw material market prices equates to a 4% decrease in profits. Copper and aluminum, as key raw materials for wire and cable production, their price fluctuations determine the profitability of wire and cable enterprises. Meanwhile, an analysis of China's copper demand structure shows that the power electronics industry, which includes electrical wires and cables, transformers, switches, and connectors, accounts for over half of the national economy. In these industries, the demand for copper in the wire and cable sector exceeds 90% of the power industry. Therefore, the development of China's cable design industry is undoubtedly also impacting copper demand and prices.