The development trend of China's power wire and cable industry sees "Biao Sheng"

As the pillar industry of our country for a long time, the electric power industry occupies an important position in the national economy. With the rapid development of China's economy since the 1990s, wire and cable manufacturing industry as an important part of the power industry chain has also flourished, especially in recent years, China's economic development is facing the bottleneck problem of energy and power shortage, the state continues to increase investment in power, making the industry into a leap into the development period. In the first half of 2005, the UHV grid west-east power transmission project began to start, in September 2005, the State Grid Corporation issued 4 billion yuan of corporate bonds, which were only used for the national grid transformation project, we felt the pace of development of the industry from a series of new and expansion projects. At the same time, China's power industry has long existed the phenomenon of 'heavy power supply, light power grid', the ratio of power supply and power grid is 7:3, while the ratio of developed countries is basically 5:5, followed by the bottleneck of transmission and transformation of power supply constraints, which will inevitably bring good development opportunities for power grid construction.

Power cable manufacturing industry belongs to the power transmission and transformation of the primary equipment industry, its technical content is relatively low, low entry threshold, the user is mainly the State grid company, this market pattern has led to the loss of pricing power of many equipment suppliers, the entire industry after rapid expansion and faced with the problem of high raw material prices, the industry competition is increasingly fierce, profits show a downward trend; Secondary power transmission and transformation equipment industry is a relatively small cyclical fluctuations of the industry, which involves high-tech fields, high technical barriers, monopolized by several large companies. In view of the development prospects of China's power industry, the wire and cable manufacturing industry as its subsidiary industry still has a good space for expansion under the promotion of the big environment.

According to the latest statistics of the China Electrical Equipment Industry Association, in the field of wire and cable, in 2006, the output of power cables reached 12.2791 million kilometers, an increase of 16.54%; Steel core aluminum stranded wire 926,600 tons, an increase of 13.54%; According to the development trend of today's electrical industry, it is expected that in 2007, power cables will reach 14.5 million kilometers, an increase of about 20%, and steel core aluminum stranded wire will reach 1 million tons, an increase of about 15%. According to China's 'eleventh Five-Year Plan', the power construction still maintains a large investment scale, will strongly stimulate the wire and cable industry market growth, to the wire and cable industry to bring a rare market opportunity, is expected to continue this trend in the future.

In the import and export trade of electrical products in 2006, the wire and cable industry still maintained a booming trend, in the imported electrical products, ranked second, 3.466 billion US dollars, in the export electrical products, wire and cable amount is the largest, reaching 7.241 billion US dollars, becoming one of the two main sources of trade surplus in electrical products (the other is electrical tools).

From the perspective of the development of the power cable industry, the development of power cables in the next few years will mainly show the following trends:

(1)1KV and below low-voltage power cables are still dominated by PVC cables, but the trend of low-voltage cross-linked cables gradually replacing PVC cables will be strengthened, and the application of warm water cross-linked cables will increase. Low smoke halogen-free flame retardant cable will be developed.

(2)6 ~ 35KV medium voltage power cables are still the dominant cross-linked cables, and prefabricated cable accessories are more widely used.

(3)110 ~ 220KV crosslinked cable application will exceed oil-filled cable, need to improve the complete supply capacity of accessories. The domestic application of oil-filled cables is reduced, and the number of oil-filled cables exported should be increased. Stainless steel electrode

(4) Research on superconducting cables should start. The basic structure, process fabrication, performance testing and superconducting connection were studied to try to produce samples.

Wire and cable are widely used in energy, transportation, information and communication, construction, railway, urban rail, automobile, aviation, metallurgy, petrochemical and other industries, at present, China's wire and cable industry is in a new stage of development, with the development of domestic urbanization and heavy industrialization in the next few years, The demand for wire and cable in communication networks, power grid construction, transportation and other fields is still growing rapidly.

At present, the national wire and cable industry has more than 6,000 enterprises, the industrial concentration is very low, 'small and complete', 'in the middle state' of the enterprise, the economy of scale is poor, therefore, the domestic wire and cable industry in low-end products fierce competition.

However, in the emphasis on safety and environmental protection of high-grade wire and cable products (such as low-smoke, halogen-free, fireproof, flame retardant cables, etc.), the product added value is high, and the gross profit of the product is as high as 40%. Due to the lack of production capacity, the domestic need to import a lot to meet the demand. This reserves a broad space for development for domestic wire and cable manufacturing enterprises with core technology and special cable product production capacity.

Wire and cable industry in the country is the second largest industry after the automobile industry, in recent years, the consumption of copper accounted for 60%-86% of the total domestic copper consumption, wire and cable industry development changes directly affect the domestic demand for copper, and ultimately affect the price trend of copper. Therefore, understanding the development status and characteristics of China's wire and cable industry, analyzing its future development trend and predicting the future demand for copper is very necessary for the copper futures market.

Wire and cable is used for power transmission and distribution, electrical energy transmission, sound, text, images and other information dissemination and lighting and other fields of a large category of electrical products, is the manufacturing of a variety of motors, electrical appliances, instruments indispensable basic equipment, is China's power infrastructure construction, new smart grid, new energy industry in the necessary basic products. Wire and cable industry occupies the domestic electrical industry 1/4 output value, is China's second largest industry after the automobile industry, China's wire and cable output value has exceeded the United States, become the world's largest wire and cable producer. The upstream of the wire and cable industry is mainly its raw material supply enterprises, such as copper rod, aluminum rod and other cable material enterprises, and there are more cable consumption industries, including power grid, automobile, machinery manufacturing, rail transit, aerospace, household appliances and so on.