In recent years, the high price of copper products has made the majority of wire and cable production enterprises miserable. With the increase of production costs, the meager profits have caused some wire and cable manufacturers to give up. It can even be said that some phenomena such as shoddy, short and short, and short of rice are also inextricably linked to the high price of copper. In line with the principle of the supremacy of interests, since the customer's request is a copper core cable, in order to win more profits, only the copper material can be used, so the phenomenon of doping and wrapper copper is everywhere in the industry.
Of course, in addition to the high price of copper, copper has its own advantages, otherwise it is impossible for Chinese wire and cable manufacturers to rely on it. Copper has excellent electrical conductivity and thermal conductivity, so it is difficult for Chinese wire and cable manufacturers to make it difficult. Even the annual copper consumption of the wire and cable industry accounts for more than 60% of the national copper use! But as we all know, China is not Copper resources are big countries. On the contrary, in China, the lack of copper resources is an unavoidable problem, which has caused copper prices to remain high.
Copper core cable also has its own drawbacks, mainly in the difficulty of installation, high installation cost, easy to cause theft, prone to aging, etc., but although the drawbacks are more significant, but because China's wire and cable industry is more inert, do not like or It is easy to not change the status quo. Therefore, there is a lack of strong companies in the industry to develop alternatives to copper-core cables, and more energy will be used to buy copper at low prices. But even if it is to grab relatively cheap copper, the cost is still higher than the development of a copper substitute. In the long run, the development of a new material to change the status quo of excessive dependence on copper is also a step in the market and a step ahead of other competitors.
At present, more than 99.6% of the wire and cable industry in China are small and medium-sized enterprises. The industry has a large surplus of production capacity, the market is very chaotic, the industry profits have plummeted, some small enterprises have stopped production, and industry reshuffle is inevitable.
In recent years, Jiayilun has invested a large amount of capital and manpower to develop aluminum alloy cable products. In terms of market practice, although aluminum-based copper is everyone's consensus, it is unlikely that a complete replacement of copper cables will be possible in a short period of time. For the time being, we estimate that the aluminum alloy cable market share in China's cable industry is about 10-15%, and will reach more than 30% in the next 3-5 years.
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