Copper prices rose after heavy losses in the wire and cable industry Awakening - wire and cable, cop

Copper prices rose after heavy losses in the wire and cable industry Awakening - wire and cable

, cop

Wire Cable Industry as never before in history Copper The speed of price growth, an increase of large stunned.

12 May, China Electric Wire & Cable Industry Association, the relevant departments in Beijing Branch to respond, copper prices skyrocketing the way, business has been miserable. This phenomenon, the formation of the industry next week a resolution to be subject to Machinery Industry Association, the National Development and Reform Commission reflect a strong appeal to the relevant government departments come forward inhibition copper rose.

It is said that because the skyrocketing price of copper, wire and cable manufacturer, has emerged of how much, how many will lose situation, some enterprises suffered great losses, therefore, simply shutdown.

Currently in Beijing, Zhejiang, Jiangsu and some companies have let employees leave.

In fact, as the country's economic macro-control agencies Development and Reform Commission as early as the end of 2005, he put forward and copper fields, to hope suppress copper, but copper prices are duty-bound to skyrocket.

Copper electrical industry is large, the country spent almost a year of copper content of 60%. Currently copper, aluminum, steel as raw materials Hardware Businesses and Building Materials Enterprises have a significant impact.

It is reported that 70% of cable price is the price of copper. "This is not about how much profit, but can keep costs to consider." Ranked as the cable industry in China Xing Yu Yijie Music Group general manager, said. According to reports, Hing Lok group consumed 1,500 tons per month of copper, the last three years, as copper prices rose 4 to 5 times, but only raised prices by 70%. In general, the complete cycle of the order of three months to one year, "has now received orders for an accounting, there are two points of profit, but discovered after delivery, capital preservation is very difficult."

For many copper products suppliers, shorten billing cycles and accelerated cash flow is also a way to reduce risk. They usually 4 to 6-month checkout period, now reduced to 2 to 3 months.

Now cable companies and many hardware companies are part way through technical innovation to resolve cost pressures, through the strengthening of quality control, reducing waste and other production processes gradually "decompression." Some enterprises are considered functional in the product design and more effort, a unique product to attract customers, then appropriate to raise prices, partial remission due to raw material price increases the pressure.

Copper aluminum on behalf of the general trend

It is understood that China's wire and cable industry from 1995 to the start of suppression by high copper prices. As the recent rapid rise in copper prices, people campaigned in tension-free apple, had to seriously consider the question: how to survive? Many enterprises have to be adopted mitigation alternatives.

Some companies are actively taking measures such as replacement light pole with black bar; copper clad aluminum conductor; aluminum on behalf of copper, such as aluminum enameled wire. If the use of aluminum magnet wire, the price could drop by two thirds.

"We think that the current copper prices have been far away from the traditional fundamentals, or the price of copper has subverted the traditional fundamentals. The market with low inventory, Capital Liquidity - the hedge funds, institutions Game has become the new copper market fundamentals. "China Non-ferrous metals Industry Association, says a senior expert.

Out of its current predicament, experts believe that the generation of copper aluminum power cables are a trend.

To good effect but there is still a long way to go, this is because some users can not accept the aluminum on behalf of the copper changes.

View was expressed that aluminum conductor resistivity than the resistivity of copper conductor large, then the aluminum metal material as a power cable conductor, the energy loss during transmission than copper materials should be large. In fact, there is no theoretical basis for this view. Because the energy loss during transmission depends on conductor resistance rather than resistivity. According to the recommended standard, at 20 , a DC resistance of copper conductor and the corresponding cross section is two specifications of aluminum conductor DC resistance rather, that is, from the energy loss during transmission considerations, a copper conductor power cable can both specifications by the corresponding large aluminum conductor cables replaced, their carrying capacity is considerable. In addition, the cost from the cable point of view, in the case of equal carrying capacity of aluminum conductor cable of the metal conductor material costs than copper conductor cable is much lower, around for about a quarter.

Industry believes that such a high in the case of copper, whether cable or the design of the user units, in the carrying capacity to ensure the same case, the choice is entirely feasible Aluminum Cables, not only to cable production companies to avoid risk, help the industry Health Development, while inhibition of the rise in copper prices will also play a role. With cases as evidence, a project institute designed the project for a copper cable is expected to spend over 200 million, while the owners of the project into copper cable aluminum cable, then spent just over 50 million to solve the problem.

It is understood that the power cable products in 2004 was about 860,000 tons of copper in 2005, with the power cable products, 100 tons of copper content. The data show that in 2005 with 15 tons of aluminum conductor material substitution of copper conductor, power cables that use 30% of products such as aluminum metal, then the power cable products in 2005 with 300,000 tons of copper will be reduced, can Imagine, if the market last year by 30 million tons of copper demand, copper prices have much change.

Industry believes that the use of copper wire and cable industry to ease the current CCA is also a good way of business pressure. After a layer of copper wire outside the package drawn from the bi-metallic wire, as has the proportion of small, and good transmission performance, especially for doing RF Coaxial cable The inner conductor, and copper wire compared to a density of about 40% pure copper. The transmission properties than copper wire, is the best conductor of RF coaxial cable inside the branch line. Suppose our wire and cable industry in order to achieve the generation of aluminum copper, copper can save a lot of limited resources.

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