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ParaBoard & Balance Cable Main Raw Materials

ParaBoard & Balance Cable Main raw materials

1. Copper, aluminum and other raw materials demand outlook

Copper, aluminum and other non-ferrous metals is the wire and cable industry's most important raw materials, in the electrical industry, wire and cable manufacturing industry is the largest demand for copper, aluminum industry. In recent years, power, communications, railways, rail city transportation, ships, automobiles, petrochemicals, construction, roads, home appliances and other industries still maintain a large investment scale, construction speed, the increasing demand for wire and cable. According to the latest data released by the National Bureau of Statistics, in 2006 the total output value of wire and cable manufacturing industry and main business income reached 396.67 billion yuan and 386.592 billion yuan, an increase of 48.23% and 47.93%. Two indicators are ranked first in the electrical industry. The actual output of copper consumption of more than 300 million tons, aluminum more than 100 million tons, becoming the world's largest wire and cable manufacturing, the largest market, the fastest growing countries.

Wire and cable with copper accounts for about 60 to 70 percent of copper consumption, all kinds of wire and cable products with copper capacity is roughly: about 20 to 30 percent of power cables, electrical equipment, wire and cable accounted for about 28 to 30 percent, Winding line accounted for about 26 to 29%, communication cable about 5 to 7%, other cable about 4 to 5%.

With the rapid development of China's economy, to the "Eleventh Five-Year" is expected to wire and cable industry with copper will reach 450 to 5 million tons.

2. Material rose, for the "copper" trapped

In 2006, in a "up" sound, China's wire and cable manufacturing enterprises for the "copper" trapped, experienced unprecedented cost pressures, because copper, aluminum, plastic and other raw materials in the cost of wire and cable accounted for more than 80% Coupled with energy prices, transportation costs and the rise in human resource costs, is to make these companies worse.

As the cost of rising sharply, but its sales price is difficult to reasonably improve. Therefore, the increasingly fierce market competition, especially in the relatively low value-added technology in the low-end wire and cable products market, the situation is quite common. At present, some cable companies have been a loss. The industry believes that the fundamental reason for low-cost competition is blind investment, overcapacity, oversupply. On the one hand, due to low investment threshold, resulting in a large influx of enterprises, resulting in the industry's enterprises "too much abuse." It is understood that the wire and cable industry, the size of the enterprise up to more than 5,000. The production capacity of these industries beyond the market demand, there has been a serious surplus. On the other hand, because the "threshold" is low, not only is the concentration of the industry getting lower and lower, and that part of the production capacity, quality control and testing and other necessary means of "workshop enterprises" to be removed from the industry, become Fake and shoddy, shoddy, jerry-building, shoddy cable products produce the source, and by lowering the sales price and other means to disrupt the market competition order, exacerbated the industry's disorderly competition.

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