Industry Overview

1. Definition: There are many types of wire and cable materials

Wire and cable materials refer to the raw materials used in the production and manufacturing of various wire and cable products. Generally speaking, the raw materials for wire and cable products include two parts: metal conductors (used for conductivity) and polymer materials (used for producing insulation layers, shielding layers, and sheaths). The development history of wire and cable products is essentially the continuous improvement of product structure and the research and replacement history of polymer materials.

According to the usage location and function of the materials used, wire and cable materials can be divided into four categories: conductive materials, insulation materials, protective layer materials, and shielding materials. In addition, there are some auxiliary materials, such as pad core materials in mining cables, materials used to fill gaps in power cables, and consumables used in the process, such as solvents in enameled wire paint.

2. Industry chain analysis: closely related to downstream wire and cable industries

The main upstream raw materials for metal materials used in wires and cables (copper and aluminum) are copper ore, aluminum ore, etc., while the upstream mainly involves mining and smelting stages, obtaining raw materials for processing copper and aluminum materials; The main raw materials used in the production of polymer materials for wires and cables are PVC resin, PE resin, etc. These raw materials are mainly extracted from crude oil and belong to the petrochemical industry products. The downstream of the wire and cable material industry is the wire and cable industry, and the major development of the cable industry is mainly focused on the development and innovation of new cable materials. At the same time, downstream industries have a significant traction and driving role in the development of the cable material industry, and the changes in their demand directly determine the future development of the cable material industry.

The upstream copper and aluminum mining enterprises of China's wire and cable materials are mainly represented by China Minmetals, Zijin Mining, China Aluminum, etc. The production enterprises of PVC resin, PE resin, etc. are mainly represented by Xinjiang Tianye, Zhongtai Chemical, PetroChina, Sinopec, etc; The midstream wire and cable material manufacturing enterprises are mainly represented by Jiangxi Copper, Wanma Group, Hangzhou High tech, etc; Downstream wire and cable manufacturing enterprises mainly include Far East Corporation, Jinbei Electric, Jinlongyu, and other manufacturers.

Industry Development History: The industry is developing rapidly

In the early days of the founding of the People's Republic of China, the materials used for cable applications mainly included cotton yarn, paraffin, asphalt, etc. The traditional wax wire was a representative of this period. "Replacing steel with plastic" has promoted the widespread application of PVC, PE, and PP in the cable industry. With the development of the national economy and the improvement of people's quality of life, the functionality, safety, and lifespan of goods circulating in the market are increasingly required. A large number of new materials are being applied and promoted in the wire and cable industry, and the cable industry has entered a new era of material application.

Industry development status

1. Copper is an important raw material for the wire and cable industry

Copper, as one of the important raw materials in the wire and cable industry, accounts for 60-70% of the national copper consumption. Among various segmented cable industries, the communication cable industry accounts for 3% of the total copper consumption in the wire and cable industry.

In recent years, the overall production and sales of refined copper in China have shown a trend of increasing year by year. However, due to the lack of raw material supply, there is a large demand for copper in China, resulting in a significant supply gap. According to data, in 2021, the national refined copper production was 10.5 million tons, with consumption