Wire and Cable Opportunities and Challenges:
The market is in a period of rapid development. The number of newly added companies is rising. The price increase of raw materials is one of the most serious problems in the wire and cable industry. Wire and cable market data: In 2005, China's wire and cable market demand reached 180 billion yuan. The rate is 7.46%
From a macro perspective, the entire Chinese wire and cable industry is in a period of rapid growth. Although the prices of major raw materials such as copper, aluminum and plastics have skyrocketed, many cable companies have been struggling to survive. However, China's "Eleventh Five-Year Plan" has been issued. In the next five years, electricity, railways, rail transit, energy, construction, The communications, shipbuilding, and automobile industries still maintain a large scale of investment and will certainly provide the wire and cable industry with many rare opportunities. It will continue to be a promising industry in China.
In the “10th Five-Year Plan†period just past, in terms of total industrial output, the wire and cable industry was the second largest industry in China after the auto industry. In the world, the total output value of China's wire and cable has surpassed Japan by the United States. It is the second largest wire and cable producer in the world.
According to the statistical analysis of China's wire and cable development from 2001 to 2004, the overall development speed of China's wire and cable industry is very fast, and the number of newly added companies is increasing. The number of enterprises that have become large-scale production has increased from 1,709 in 2000 to 2,219 in 2004. The average annual growth rate is 7.46%.
According to the National Bureau of Statistics, in 2005, China's wire and cable market demand reached 180 billion yuan, of which the growth rate of power cables reached 58%. From January to November 2005, the power cables reached 6.7078 million kilometers, and the ACSR reached 68.96 million tons.
Raw material price increase is one of the most serious problems in the wire and cable industry, which is affected by the rising prices of raw materials such as copper, aluminum and plastics. In particular, the price of copper has been continuously rising. The wire and cable industry has experienced unprecedented pressure and increased the company’s production costs. This year, this situation will still not be effectively transformed. People in the industry believe that China has entered the early stage of heavy chemical industry. With the arrival of high-cost era, the rising price of production factors has become an inevitable trend, coupled with the increasing demand, and therefore expect raw material prices to return to the original The level is unrealistic. However, it is still necessary to effectively suppress such irrational price-raising factors, such as market monopoly behavior and market speculation, through the improvement of market mechanisms, through the government's macro-control and necessary interventions. This is not only an important condition for promoting the coordinated and healthy development of the national economy, but also a development environment for the wire and cable industry. As raw materials such as copper, aluminum, and plastics account for a large proportion of the cost components of wire and cable products and account for more than 80% of total costs, a significant increase in raw material prices has resulted in a substantial increase in product costs, coupled with energy costs and transportation costs. And the increase in the cost of human resources has also contributed to the further increase in corporate costs.
As the cost has risen sharply, its sales price has been difficult to increase. Therefore, the increasingly fierce market competition, especially in the middle and low end wire and cable products market with relatively low technology added value, the situation of price reduction and sales is quite common. At present, some cable companies have suffered losses. Industry insiders believe that the underlying causes of low-cost product competition are blind investment, overcapacity, and oversupply. On the one hand, due to the low investment threshold, a large number of companies have flooded into the industry, causing companies in the industry to “overuse too muchâ€. It is understood that the size of the wire and cable industry is more than 5,000 companies. The production capacity of these industries exceeded the market demand and there was a serious surplus. On the other hand, due to the low “thresholdâ€, not only does the concentration of the industry become lower and lower, but also some “workshop companies†that do not necessarily have the necessary means of production capacity, quality control, and testing can be incorporated into the industry and become Counterfeiting, shoddy work, cutting corners, shoddy work, shoddy products, and the origin of products, and by means of lowering the sales price and other means to disrupt market competition order, exacerbated the disorderly competition in the industry.
Recently visited some cable companies, unanimously reflected that the copper price is too high to bear, and some companies have already stopped production. However, there are still markets, and millions of cable orders also occupy a certain proportion, but users are unwilling to accept the fact that the price of cables has been raised due to the increase in copper prices.
Cable companies are very troublesome, and some companies have to sign contracts with users. The cable price can not be adjusted, but if there is another cable demand, I must do it.
The market is in a period of rapid development. The number of newly added companies is rising. The price increase of raw materials is one of the most serious problems in the wire and cable industry. Wire and cable market data: In 2005, China's wire and cable market demand reached 180 billion yuan. The rate is 7.46%
From a macro perspective, the entire Chinese wire and cable industry is in a period of rapid growth. Although the prices of major raw materials such as copper, aluminum and plastics have skyrocketed, many cable companies have been struggling to survive. However, China's "Eleventh Five-Year Plan" has been issued. In the next five years, electricity, railways, rail transit, energy, construction, The communications, shipbuilding, and automobile industries still maintain a large scale of investment and will certainly provide the wire and cable industry with many rare opportunities. It will continue to be a promising industry in China.
In the “10th Five-Year Plan†period just past, in terms of total industrial output, the wire and cable industry was the second largest industry in China after the auto industry. In the world, the total output value of China's wire and cable has surpassed Japan by the United States. It is the second largest wire and cable producer in the world.
According to the statistical analysis of China's wire and cable development from 2001 to 2004, the overall development speed of China's wire and cable industry is very fast, and the number of newly added companies is increasing. The number of enterprises that have become large-scale production has increased from 1,709 in 2000 to 2,219 in 2004. The average annual growth rate is 7.46%.
According to the National Bureau of Statistics, in 2005, China's wire and cable market demand reached 180 billion yuan, of which the growth rate of power cables reached 58%. From January to November 2005, the power cables reached 6.7078 million kilometers, and the ACSR reached 68.96 million tons.
Raw material price increase is one of the most serious problems in the wire and cable industry, which is affected by the rising prices of raw materials such as copper, aluminum and plastics. In particular, the price of copper has been continuously rising. The wire and cable industry has experienced unprecedented pressure and increased the company’s production costs. This year, this situation will still not be effectively transformed. People in the industry believe that China has entered the early stage of heavy chemical industry. With the arrival of high-cost era, the rising price of production factors has become an inevitable trend, coupled with the increasing demand, and therefore expect raw material prices to return to the original The level is unrealistic. However, it is still necessary to effectively suppress such irrational price-raising factors, such as market monopoly behavior and market speculation, through the improvement of market mechanisms, through the government's macro-control and necessary interventions. This is not only an important condition for promoting the coordinated and healthy development of the national economy, but also a development environment for the wire and cable industry. As raw materials such as copper, aluminum, and plastics account for a large proportion of the cost components of wire and cable products and account for more than 80% of total costs, a significant increase in raw material prices has resulted in a substantial increase in product costs, coupled with energy costs and transportation costs. And the increase in the cost of human resources has also contributed to the further increase in corporate costs.
As the cost has risen sharply, its sales price has been difficult to increase. Therefore, the increasingly fierce market competition, especially in the middle and low end wire and cable products market with relatively low technology added value, the situation of price reduction and sales is quite common. At present, some cable companies have suffered losses. Industry insiders believe that the underlying causes of low-cost product competition are blind investment, overcapacity, and oversupply. On the one hand, due to the low investment threshold, a large number of companies have flooded into the industry, causing companies in the industry to “overuse too muchâ€. It is understood that the size of the wire and cable industry is more than 5,000 companies. The production capacity of these industries exceeded the market demand and there was a serious surplus. On the other hand, due to the low “thresholdâ€, not only does the concentration of the industry become lower and lower, but also some “workshop companies†that do not necessarily have the necessary means of production capacity, quality control, and testing can be incorporated into the industry and become Counterfeiting, shoddy work, cutting corners, shoddy work, shoddy products, and the origin of products, and by means of lowering the sales price and other means to disrupt market competition order, exacerbated the disorderly competition in the industry.
Recently visited some cable companies, unanimously reflected that the copper price is too high to bear, and some companies have already stopped production. However, there are still markets, and millions of cable orders also occupy a certain proportion, but users are unwilling to accept the fact that the price of cables has been raised due to the increase in copper prices.
Cable companies are very troublesome, and some companies have to sign contracts with users. The cable price can not be adjusted, but if there is another cable demand, I must do it.
Radiant Burners,Wood Pellet MillCo., Ltd. , http://www.coal-gasifiers.com