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Factors affecting the wire and cable industry statistics

    Relations with domestic and foreign policy
    Wire and cable industry is supporting industries, and the development of energy, electricity, transportation and other key industries are closely related, in recent years China has strongly urban power grid construction, rural power grids and urban light rail construction, enacted several favorable policies. For example, the national railway work conference pointed out that in 2010 the national railway arrangements 823.5 billion yuan in fixed assets investment, including capital construction investment of 70 billion yuan. The next three years, China will launch a number of new lines, new railway lines in operation reached 26,000 kilometers, the scale of investment of about 700 billion yuan a year also. Large-scale investment will bring a lot of orders for the upstream wire and cable manufacturers.
    Meanwhile, the wire and cable industry is widely used in electricity, construction, automotive, telecommunications and other national security and life-related businesses. In recent years, multi-fires by the accident investigation, because a lot of wire and cable products are defective or do not triggered by the standard installation. Prevent recurrence of major accidents, the state control of industry and product standards more stringent. The constant introduction of new technical standards, technology and capital requirements for some SMEs has improved.
    Because the cable industry in the upstream industry chain, a larger proportion of the cost of raw materials, while China's wire and cable manufacturers more than 90% for SMEs, high debt ratio, own slower turnover, the country's monetary policy SMEs capital chain will cause a great impact. Price inflation in today's country frequently adjust monetary policy, monetary tightening, raise interest rates, so that SMEs have a lot of pressure in terms of capital.
    Export volume of China's cable industry is large, the impact of international economic organizations policy as well. Adjust and update technical standards will directly affect the tariff export coastal parts of the cable manufacturer. Australian Customs and Border Protection Agency announced officially filing for cable products imported from China to start anti-dumping investigation. According to the Electrical Association statistics, China's export value of the product concerned to Australia in 2010 for $ 235 million.
     Relationships with raw material markets

    The proportion of the cost of wire and cable products in about 80% of raw materials, including copper, aluminum and plastic. According to the relevant estimates, raw material prices rose 5%, equivalent to a 4% decrease in profit. Copper and aluminum wire and cable production of the most important raw material, and its large-scale manufacturers, with higher bargaining power, which restricts the purchase cost of raw materials wire and cable industry. Therefore, the adjustment directly affects thousands of small and medium sized copper cable manufacturer nerves.
    Copper is mainly used in electric power, refrigerators, air conditioners and automotive fields. At present, China's copper demand from the construction point of view, the largest share of the power industry, more than 50%, mainly used in wire and cable, transformers, switches, connectors, etc. Demand for copper wire and cable which accounted for more than 90% of the electricity industry. If the installed capacity of 40 million kilowatts per year, then the only medium voltage XLPE cables will need 120,000 kilometers, the amount of copper amounted to nearly 10 million tons. Therefore, the development of wire and cable industry will undoubtedly affect copper demand and prices.
According to the 2009 China wire and cable industry output estimated five categories of products, in 2009 the total amount of copper wire and cable industry in China was 450 million tons, the amount of scrap copper is about 1 million tons. In the five categories of products, the use of copper power cable is 1.4 million tons, the amount of copper enameled 100 tons, is the largest amount of copper two categories of products.
    Relationships with related industries

    Our resources, to a large extent determines the country's power industry development policy, specific guidelines are: to develop hydropower and thermal power, proper development of nuclear power and gas power, to open up all kinds of new energy sources. It is China's coal resource area, the uneven distribution of water and other such national emphasis on increasing power grid construction. To the closing of the end of the Plenum of the Central Committee in the "" Eleventh Five-Year Plan "proposal" clearly proposed to develop the country's power grid construction, and major equipment manufacturing industry, including transmission and distribution equipment, including, This gives China's power grid equipment, the company offers a good opportunity for development. Telecommunications industry to develop again, it will promote the sustainable development of communication cables and fiber optic cable.

     Construction industry in the early 2000s to become one of China's pillar industries, related with the development of the home appliance industry continued rapid development of the housing market, which will bring opportunities with architectural lines and other electrical equipment, cables. With the steady increase in car ownership, national implementation of the various subsidies for new energy vehicles, the auto industry will become a new economic growth point, it will bring rapid development to the automotive and enameled wire. Further expansion of railway construction to improve, which provides the market for electric locomotives vaporized copper alloy contact line, rolling stock line, winding wire, special cable, data transmission cables. In highways, road traffic is the key areas of national infrastructure, the annual investment of 10 billion yuan, China's highway will gradually into the information technology, cable companies promising.
    Development of the city will promote the development of urban rail transit, subway, light rail construction of a large area, the state proposed policy priority development of urban rail transit, in 2010 the total investment will reach 800 billion yuan, Beijing, Shanghai, Tianjin, Shenzhen, Wuhan, Dalian, Qingdao, Chongqing, Guangzhou, Shenyang, and many other cities have urban rail construction, will promote the application of a variety of fire-retardant cables, tunnels and subway stations have a large demand for lighting cables.
    By the end of 2010, the number of nuclear power plants will reach our stabling more than 10 seats, nuclear power capacity to reach 20 million kilowatts, power generation accounts for 17 percent of China's total generating capacity. The rapid development of nuclear power plants, nuclear power plants provide 10 billion yuan for the year with a cable market space.
    Between 2010 and 2020 is expected to increase the rate of oil platforms will remain at 8% -10%. The number of oil platforms in 2008 was about 250 each year in need of repair existing oil platform integrated with submarine cables about 10km. And each new oil platform integrated submarine cable required is about 40km. In addition to oil platforms require extensive use of integrated undersea cable, the country on the island of exploitation demand for integrated undersea cable is also increasing, coupled with Shanghai on the demand for wind power projects integrated undersea cables, comprehensive measure islands and offshore wind power development number of undersea cables comprehensive annual demand of about 300 km.
    Situation of civil aviation to flourish, a sharp rise in demand for specialty wire and cable. According to the information, the cable is not less than the amount of Boeing aircraft 80km, where the cabin wiring specialty wire and cable less than 30km, but the vast majority of cable used is small, light weight, high temperature irradiation crosslinking or silane crosslinking of wire and cable. Nation-building, such as the Air Force air defense equipment, weapons, aircraft repair and other industries have emerged strong demand momentum, the future needs of the cable can not be ignored. Open to the cable industry, the current can produce special cables, the full range, one of the few companies of a certain size, specialty wire and cable market outlook is very broad.