Wire and cable as the main carrier of power transmission, in domestic and foreign policies and raw material prices, but also because it is widely used in electric power, construction, automotive, communications and other industries, and inevitably and the development of these downstream industries are closely related .

Internal and external policies

In recent years the country vigorously carry out urban power grid construction, rural power grids and urban rail transit construction, promulgated a number of good policies. The development of these industries will bring a large number of upstream wire and cable manufacturing enterprises orders. At the same time, due to the quality of wire and cable caused by high fire, in order to prevent the recurrence of major accidents, the state wire and cable industry and product standards for more stringent control, the introduction of new technical standards.
In foreign countries, on the one hand, China's cable industry exports a larger, by the international economic organization policies are also greater impact; the other hand, an endless stream of anti-dumping investigations on China's wire and cable manufacturers have a very negative impact.

Raw materials

The cost of wire and cable products in the proportion of raw materials in about 80%, including copper, aluminum and plastic, according to the relevant estimates, raw material prices rose 5%, equivalent to a profit reduction of 4%. Copper and aluminum wire and cable production is the most important raw materials, their price changes, determine the wire and cable business profits. At the same time, from the current structure of China's demand for copper, the power industry, the largest share of more than 50%, mainly for wire and cable, transformers, switches, connectors and so on. The demand for copper wire and cable accounted for more than 90% of the power industry. Therefore, the wire and cable industry will undoubtedly affect the development of copper demand and prices.

Downstream industry

Grid General Secretary Xi Jinping in May 2014 for the first time the new normal Chinese economy, the current policy is conducive to UHV construction, the National Grid in 2015 planned 13 lines is expected to pull more than 300 billion yuan of investment, the other national grid also intends to " Along the way "to promote the construction of special high-pressure, so the next five years will be the UHV industry gold development cycle, wire and cable companies will also benefit. Recently, foreign well-known research website cnmn.com reported that the next five years, China will enter the golden age of the development of ultra-high pressure, which makes China's wire and cable market to 8-9% annual growth rate.

Traffic With the continuous high-speed rail "sea", and the continuous improvement of urban rail transport, which for the locomotive vehicles with lines, winding lines, dedicated optical cable, data transmission cable to provide market. Coupled with China's highways and railways will gradually enter the information, the demand for fiber-optic cable is also increasing, promising wire and cable companies.

Offshore wind power development efforts in the country from the 2014 "orderly development of wind power" across the 2015 "vigorously develop wind power." Wind power is expected to rise for the future to carry the country's energy structure adjustment Ding main status. The offshore wind power as an important component of wind power projects, will drive the annual demand for submarine cable climbing. Coupled with offshore wind power with a special cable technology content requirements are relatively high, will also encourage wire and cable companies continue to develop new technologies and enhance competitiveness.

In addition, with the new energy vehicles, photovoltaic and other new energy industries, real estate industry, nuclear power, aviation, communications and other industries, their demand for wire and cable will also increase, and the development of these industries will also On the wire and cable industry have a profound impact.