【 Building materials network 】 Wire and cable The industry is the second largest industry in China after the automobile industry. In recent years, copper consumption accounts for 60% - 86% of the total domestic copper consumption Cable The development and changes of the industry directly affect the demand for refined copper in China, and eventually affect the price trend of copper. Therefore, it is very necessary for the copper futures market to understand the development status and characteristics of China's wire and cable industry, analyze its future development trend and predict the future demand for copper.
　　
Wires and cables are a large class of electrical products used in power transmission and distribution, power transmission, sound, text, image and other information transmission, lighting and other fields electric machinery The essential basic equipment of electrical appliances and instruments is a necessary basic product in China's power infrastructure construction, new smart grid and new energy industry. The wire and cable industry accounts for 1/4 of the output value of the domestic electrical industry, which is the second largest industry in China after the automobile industry. The output value of wire and cable in China has exceeded that of the United States, becoming the world's largest wire and cable producer. The upstream of the wire and cable industry is mainly its raw material suppliers, such as copper poles, aluminum poles and other There are many cable material enterprises and cable consumption industries, including power grid, automobile, machinery manufacturing, rail transit, aerospace Household Electric Appliances Etc.
　　
Classification of wires and cables and profit model of enterprises
　　
According to the classification of the National Bureau of Statistics, the wire and cable industry belongs to the electrical machinery and equipment manufacturing industry. The main products include power cable Bare conductors, winding wires, cables for electrical equipment, communication cables and optical cables. Wire and cable products can be divided into low-voltage, medium voltage, high-voltage, ultra-high voltage and ultra-high voltage according to the voltage level. In China, the voltage below 110KV is called distribution voltage, which completes the function of voltage reduction and distribution to power users in a certain way; The voltage between 110KV and 1000KV is called transmission voltage, which completes the long-distance transmission function of electric energy. In the transmission voltage, the voltage between 110KV and 220KV is high voltage, the transmission voltage between 330KV and 750KV is ultra-high voltage, and the voltage above 1000KV AC and DC plus or minus 660KV is called ultra-high voltage.
　　
The wire and cable industry management organization is the wire and cable branch of the China Electrical Appliance Industry Association under the China Federation of Industry. Its main functions are to assist the government in self-discipline management of the industry, represent and safeguard the interests of the wire and cable industry and the legitimate rights and interests of member enterprises, and organize the formulation of industry rules and regulations to be observed by the wire and cable industry.
　　
Ordinary cable enterprises mainly earn profits by earning processing fees. Enterprises are signing contracts with customers pin In sales contracts, the purchase price of copper (aluminum) rods plus a certain percentage of gross profit is generally taken as the sales price. In terms of payment collection, the customer mainly adopts the stage payment mode, such as the "2-5-2-1" mode, that is, 20% of the advance payment shall be paid after the contract is signed, 50% after the product is delivered, 20% after the product is installed, and the remaining 10% shall be paid as the quality guarantee deposit after the expiration of the warranty period. This payment collection mode requires cable enterprises to reasonably plan their cash flows to avoid difficulties in capital turnover. In terms of the purchase of copper (aluminum) rods, some of the purchase prices adopt the current price model, and some adopt the pricing model of copper and aluminum spot price plus copper and aluminum rod processing fees. Different purchase and sales models make cable enterprises have different risk exposures when dealing with fluctuations in the price of raw materials.