'Sandwich' of wire and cable industry is analysed

( Industry news] 'Sandwich' the pain of wire and cable industry up. the globledata P black ants cable network: wire and cable industry as an important supporting industry of national economy, increasing demand in recent years, especially the high-end market with cable demand continued to expand. But still was not able to have a stronger local cable industry, but in high cost, low profits, excess production capacity, etc. Plus cable in some special cases, thus let the cable industry's development is more difficult. Fixed wiring cable, for example, under normal circumstances, the non-ferrous metal industry pricing power structure is upstream to the downstream is strong, but the wire and cable industry in our country, this rule has changed, so the domestic wire and cable industry become embarrassed 'sandwich layer'. The loss of pricing power. For the users of our wire and cable, for the most part focused on monopoly industries and large projects, such as electric power, communication, railway, the market imbalance, cannot maintain the fairness of market transaction and the rationality of distribution of interests, wire and cable industry almost no voice in the formation of pricing power. System risk in the industry. Due to the strong pressure of the downstream enterprises, all kinds of risk income distribution too biased state monopoly industry. Within the industry, the buyer's performance because of its special status becomes particularly strong, not only on price, also reflect on some of the commercial credit. Downstream users in strong terms, limit, the lowest price, credit, etc. , to increase the credit risk within the industry as a whole, make the industry concentration and scale formation of resistance. RVVB*. RVVB disorderly market competition. Cable companies homogenized competition is fierce, the homogeneity and cable technology, the means of production has a close contact. In quite a number of manufacturing enterprises, the annual profit % above will be used for technology development and product development, but this kind of situation in the circle of cable enterprise few and far between. Cable companies are blindly following capacity expansion, resulting in a large number of repeated investment, exacerbated the market malignant competition, mid-range serious excess capacity, and the high-end product market is in short supply. In addition to industrial chain itself factors, cable companies face the external resistance is to be reckoned with. The cost factors and macro factors occupy the mainstream, coupled with market mechanism is not sound, make industry lack of suitable for transformation of the soil. Cost compressed industry profits. China's wire and cable industry raw material costs accounted for the total cost % above, the main cost is concentrated in two large metal copper and aluminum. Given the weak pricing power in the industry generally % of each raw material prices, product gross margin decline %. The wire and cable industry raw materials only % of total cost, Japan is more low, about %. A stronger yuan compressed export scale. And China's traditional export processing enterprises, wire and cable companies are also facing the same problem. According to the national standard production of standardized products in the past for a period of time the long-term dependence on exports, the main supply countries of Europe and the United States and other major developing countries. With the stronger yuan against the dollar, cable export sector in China is facing a hit. Of course, this also with the history of foreign trade processing enterprises do not attach importance to risk management directly related to foreign exchange market. The lack of a reasonable market mechanism. The competent department of the government in the cable industry in the process of development planning, the lack of a systematic consideration. Over the past nearly ten years, cable industry policy focus on the introduction of new investment project, emphasize the development scale and gross domestic product ( GDP) , revenue growth, promoted the cable around the blind development of the enterprise. For cable industry and policy support of new technology, new process is far insufficient, the soft environment of cultivating industrial long-term competitive ability also need to be strengthened. As the main to refined copper consumption, the cable industry development bottleneck strictly restricted the space of the copper prices continue to rise, at the same time also makes the refined copper consumption further down the long adjustment period. China has now spent purely driven by investment growth and productivity replications period of economic growth. The next cycle of growth, I'm afraid I will be far from copy of previous development model can achieve. Other developing countries and regions, such as India and Africa countries, despite the imagine space is enormous, if want to a lot of investment and capacity expansion, is a not short time, I'm afraid. China's refined copper consumption in the downstream industry, needed time to transform its industry development, and other developing countries in the short or medium term can still have a production capacity of large-scale expansion. These two factors determines, in a long term future of copper remain weak will become inevitable. Obviously, wire and cable industry in China owing to lack of new technology and new product research and development, and procurement units for copper cable, most circulation on the market at present is still a copper cable. The copper core raw material - — Front of copper, wire and cable manufacturing enterprises was ate up, due to the copper price fluctuation is relatively frequent, so suffered all the wire and cable manufacturers. In such an objective reality, the domestic wire and cable industry must strengthen technology research and development strength, as far as possible out of the great effects of fluctuations in copper prices, on the premise of control raw material costs, so as to help enterprises to become bigger and stronger. More information please pay attention to the HTTP / / WWW. globledata。 com