Wire and cable industry reform predicament sanewcable P in the electrical industry most industry rises, the author in the cable companies found a strange phenomenon, although the order has been up, but in the communication with various enterprises still feel most is sad.
The reason is very clear, for heavy industry light cable, the price of raw materials determines the loss of each enterprise surplus.
Analysts believe that the root cause of the loss of power cable industry lies in raw material prices rising too fast, while the national electricity grid in years still have a lot of large-scale power grid construction, but also difficult to bring in wire and cable industry overcapacity fundamental change.
Two head pressure cable industry in the first half, some electric power equipment enterprises with the recovery of the spring breeze developing very fast, exciting performance, but at the level of power equipment of wire and cable business, did not keep up with the pace of the rapid development of the electric power industry as a whole.
Wire and cable industry in China occupies very important position in national economy, off sales growing in recent years.
Because of excess production capacity, raw material prices, the current enterprises to develop the good and bad are intermingled, the signs of industry consolidation has been weakened.
It is understood that the international market prices, the excessively rapid growth of domestic demand, especially the influence of circulation hype, copper, aluminum, high quality of special steel, such as raw material supply nervous, had a great influence on power equipment company's profit margins, especially for electric wire electric cable, transformer for the power equipment industry profitability has a larger effect.
In the previous critics think that the national electric wire electric cable profession ten big wire and cable manufacturing enterprises % of total output value accounted for the industry, industry concentration is low, economies of scale is insufficient, product structural contradiction.
Domestic wire and cable manufacturers, the market competition is increasingly fierce, the prices of raw materials devouring manufacturer profits, only the nearly m cable manufacturer divvying up market share for each big cable factory has formed a lot of pressure, the market once appear the situation of oversupply, even some small and medium-sized cable factory further reduce prices for promotional products, also make some cable manufacturers, reeling in the market development.
In addition, users of cable products pricing recognition lag, the difference of integrity of payment to the enterprise also has brought the huge pressure of business.
In this situation, the major cable factory started from every link of enterprise management control the cost, to simplify processes, reduce the internal friction of enterprises, standardize business processes, adjust product structure, expanding export and other ways to get more living space.
Meanwhile, for wire and cable products price adjustment is imperative.
Taurus securities research Zou Jian he believes that the current industry situation is: the main raw material copper prices rose sharply, lead wire and cable enterprise money is in short supply, slow capital turnover.
G change especially, head of the company that the company is good for the contraction of wire and cable business, after all, this is a very low profitability of the business, and take up a lot of resources, as well as potential risks.