As the primary carrier of transmission, wire and cable is not only influenced by domestic and international policies and raw material prices, but also closely tied to the development of downstream industries such as electricity, construction, automotive, and communications due to its extensive application in these sectors.

Company News: Domestic and International Policies

In recent years, the state has vigorously promoted the construction of urban and rural power grids, as well as urban rail transit, implementing a series of preferential policies. The development of this industry is expected to bring a surge in orders for upstream wire and cable manufacturing companies. Concurrently, due to frequent fires caused by wire and cable quality issues, the state has been imposing increasingly stringent controls on the wire and cable industry and product standards to prevent major accidents from recurring, and has introduced new technical standards.

Abroad, on one hand, China's cable industry faces significant export volumes affected by international economic organizations' policies; on the other hand, endless investigations are also having an adverse impact on Chinese cable manufacturers.

Raw Materials

The raw material component in the cost management of the cable company's products accounts for about 80%, including copper, aluminum, and plastics. According to relevant data calculations, a 5% increase in raw material market prices equates to 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. At the same time, the analysis of China's copper material demand structure shows that the power electronics industry accounts for more than half of the national economy, with its main technologies including wire and cable, transformers, switches, and connectors. In these industries, the demand for copper in wire and cable accounts for over 90% of the power industry. Therefore, the development of China's cable design industry will undoubtedly also affect the demand and price of copper.