The wire and cable industry's dependence on copper has never changed. The national standard stipulates that electrolytic copper should be used for the copper conductor of the power cable, which has a high purity. Once the copper price changes, the cable price will change. According to relevant statistics, the amount of copper used in wire and cable accounts for about 60%-70% of the country's copper consumption, and the five categories of cable products are all useful to copper.

As the coronavirus outbreak spreads around the world, markets are increasingly concerned about the severity and economic impact of the pandemic. Copper prices have also been affected by the outbreak and the market. However, as we all know, the high price of copper, coupled with the special order contracts of the cable industry, will lead to the rise or fall of copper prices, which is unfavorable to wire and cable manufacturers.



Some cable companies hope that through the grid operator can change the bidding method, increase the contract price that has been signed, so that cable companies can overcome difficulties. However, more and more enterprises have begun to compete irregularly. At the same time, because China's wire and cable enterprises are numerous, small and scattered, the disorderly competition and price pressure in the wire and cable industry are intensified. In the face of rising raw material prices and rising wire and cable costs, manufacturers show more "helplessness". The price cannot be changed after the contract is signed. Therefore, the cost pressure caused by rising raw material prices can only be borne by the enterprises themselves.

Foreign cable enterprises have established a good risk control system by signing long-term supply treaties, hedging and long-term trade contracts with suppliers to avoid the risk of copper and aluminum price fluctuations; Adopt centralized procurement department, improve the company's negotiating position with suppliers, strengthen and improve the raw material risk control system and mechanism.

Because the cost of wire and cable is rising sharply, its sales price is difficult to increase reasonably. Therefore, the market competition is becoming increasingly fierce, especially in the low-end wire and cable product market with relatively low technical added value, and the situation of price competition is quite common.

China's local wire and cable manufacturers are under enormous cost pressure. In addition to copper prices, cost pressures for cable manufacturers include:

1, insulating sheath material: according to different cable models, there are polyvinyl chloride, polyethylene, cross-linked polyethylene, ethylene propylene rubber, natural rubber, etc. These raw materials also affect the price of the cable.

2. Armouring materials: armouring materials include steel tape armouring, fine steel wire armouring, thick steel wire armouring, etc

3. Labor cost factors: With the continuous increase of people's income, the cost of cable factory workers has also increased year by year, which has also become a cost factor affecting cables.

4. Quality control and after-sales costs: Although some small cable companies can imitate the shape of some cables, they are different from the cables produced by large factories. Maybe the cable we produce can be used normally for seventy years, but the cable produced by the small factory will break in five years.

Whether it is the rise of unilateral raw materials, forcing the wire and cable industry to seek a new development path, or the development of aluminum alloy cables with more stable performance and lower costs, or efforts to modify unreasonable "hegemony terms", through strict wire and cable cost management and more perfect wire and cable production technology to reduce costs, it is very necessary.

However, no matter how the market changes, Qingdao Tianxing Cable Co., Ltd. always adheres to a high starting point, high quality, high requirements, and high standards to be a good cable for users to rest assured.

Qingdao Tianxing Cable Co., Ltd. is a technology enterprise specializing in the production of wire and cable in Shandong Province, with more than 150 sets of domestic excellent cable production equipment and testing equipment, excellent production technology, modern testing equipment, to ensure stable product quality and timely supply. The company's main products are power cable, mineral cable, high life wire and cable, radiation crosslinked cable, control cable, computer cable, photovoltaic cable, communication cable, data cable, low smoke halogen free cable, flame retardant series wire and cable.