Raw material prices, wire and cable lines face the most serious problems in the industry
Affected by the high prices of raw materials such as copper, aluminum and plastics, especially the price of copper has risen steadily. The wire and cable industry has felt unprecedented pressure and increased the production costs of enterprises. This situation will not be effectively transformed this year. The industry believes that China has entered the early stage of heavy chemical industry. With the advent of the high cost era, the rising price of production factors has become an inevitable trend. In addition, the demand is increasing, so we hope that the price of raw materials will return to the original. The level is unrealistic. However, how to effectively suppress the irrational price hikes such as market monopoly behavior and market speculation through the improvement of the market mechanism and the government's macro-control and necessary interventions is still necessary. This is not only an important condition for promoting the coordinated and healthy development of the national economy, but also the development environment expected by the wire and cable industry. Since copper, aluminum, plastics and other raw materials account for a large proportion of the cost structure of wire and cable products, accounting for more than 80% of the total cost, the substantial increase in raw materials has caused a significant increase in product costs, plus energy prices and transportation costs. As well as the rising cost of human resources, it has also pushed up the cost of enterprises.
As the cost is rising sharply, its sales price is difficult to increase reasonably. Therefore, the market competition is increasingly fierce, especially in the low-end wire and cable products market with relatively low technology added value. The situation of price-price competition is quite common. At present, some cable companies have suffered losses. The industry believes that the root cause of low-cost competition for products is blind investment, overcapacity, and oversupply. On the one hand, due to the low investment threshold, a large number of enterprises have flooded, causing enterprises in the industry to “excessively excessiveâ€. It is understood that the number of large and small enterprises in the wire and cable industry has reached 5,000. The production capacity of these industries exceeds market demand and there is a serious excess. On the other hand, because the “threshold†is low, not only the concentration of the industry is getting lower and lower, but also a “shopping enterprise†that does not have the necessary means of production capacity, quality control and testing is able to be mixed in the industry and become Counterfeit and shoddy, shoddy, cut corners, shoddy goods, source of shoddy products, and disrupted market competition by means of lowering sales prices, thus exacerbating disorderly competition within the industry.
Recently, some cable companies have been visited, which consistently reflects that copper prices are too high to bear, and some enterprises have stopped production. However, there are still some markets, and millions of cable orders also account for a certain proportion, but users are reluctant to accept the fact that cable prices are raised due to the increase in copper prices.
Cable companies are very difficult, some companies have to sign contracts with users, the cable price is not adjustable, but if there is cable demand, I must do it.
"The loss of the embankment within the embankment" will be restored next time. The outside world said that this is a unique "overlord clause" in the cable industry. The refractive cable industry is struggling with soaring copper prices.
Since the international and domestic aluminum ingot market prices have soared last year, the domestic cable industry has suffered from the surge in raw materials. Almost all cable companies are facing serious crisis. Some cable companies hope that the power grid operators can change the bidding method and increase the price of the signed contracts so that these enterprises can tide over the difficulties.
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