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Wire and cable industry in China under the influence of three factors

Shenzhen STC Cable Manufacturer | Updated: Jan 28, 2016

The main carrier of wires and cables for power transmission, by domestic and foreign policies and the impact of raw material prices, but also because it is widely used in electric power, construction, automotive, telecommunications, and other industries, is inevitable and is closely related to the development of downstream industries.
Domestic and foreign policy
In recent years, country to urban power grid construction, rural power grid reconstruction and urban rail transit construction, promulgated a number of good policy. The development of these sectors will bring order to wire and cable manufacturers in the upper reaches. Meanwhile, due to high fire for Hebei electric wire and cable quality reasons, to prevent major accidents from happening again, State control in wire and cable industry and product standards become more stringent, new technical standards have been promulgated.
In foreign countries, on the one hand, China's cable industry exports large amount, by the larger policy implications of international economic organizations on the other, an endless stream of anti-dumping investigations on Chinese wire and cable manufacturer has had a very adverse impact.
Raw materials
Proportion of wire and cable products in the cost of raw materials in 80%, including copper, aluminum, and plastics, according to estimates, rising prices of raw materials 5%, equivalent to 4% profits. Copper and aluminum wire and cable production is the most important raw materials, their prices rise, determine the wire and cable business profit. Meanwhile, demand for copper in China from the current structure, the power industry accounts for the largest share, more than 50%, is mainly used for wires and cables, transformers, switches, connectors, and so on. Demand for copper wire and cable accounted for more than 90% of the electric power industry. Therefore, the development of the wire and cable industry will no doubt affect copper demand and prices.

The downstream industry
Power grid
XI Jinping was first proposed in May 2014, China's economy, General Secretary of the new norm, the current policies are conducive to construction of UHV, 2015 planning 13 lines to the national grid is expected to stimulate more than 300 billion yuan of investment, national grid also intends to help "along the way" to promote construction of UHV, so over the next five years is the Golden development period of UHV, wire and cable business also will benefit from the rich. Recently, the well-known study abroad Web site reported that the next 5 years, China will enter a golden age of development of ultra high pressure, which makes China's wire and cable market around increased at an annual rate of development.
With the growing high-speed rail "out to sea", and the continuous improvement of urban rail transit, this rolling line, wire, cables, special cables, data transmission market. Plus expressways and railways in China will gradually enter the information, and growing demand for fiber-optic cable, wire and cable business has bright prospects.
Offshore wind energy
National development of wind power in 2014 from the "orderly development of wind power" across from 2015 "developing wind power". Wind power is expected to rise to Ding on his subjects of national adjustment of energy structure in the future. Offshore wind energy as an important part of the wind turbine project, will lead rising demand of submarine cables. With special cable for offshore wind technology high requirements, will also promote wire and cable business to develop new technologies and enhance their competitive edge.
In addition, with the development of new energy vehicles, new energy sources such as photovoltaic industry, real estate industry, the development of nuclear power, aviation, communications and other industries, they will also increase the demand for wire and cable, and the development of these industries, will also have a far-reaching impact on the wire and cable industry.

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