Normally, the price of clothes is higher than that of cotton, and the upstream industry may be slightly weaker than the downstream industry. In China, the wire and cable industry is just reversed.
As we all know, most of the users of China's wire and cable industry are large-scale engineering or monopoly industries, such as communications, which directly leads to the imbalance of the wire and cable market. No matter how hard the country makes macro-control, it can not change the fairness of market transactions and the rationality of interest distribution, which leads to the wire and cable industry has no voice in the pricing power The root cause.
China's copper industry is in the downstream industry. At present, China's copper industry has entered a long adjustment cycle, which strictly limits the development of China's wire and cable industry. At the same time, the disorder of market competition makes the homogenization competition of wire and cable industry increasingly fierce, lacking reasonable market guidance and systematic guidance from the government.
In addition to the influence of copper price, the cable industry has also become an obstacle to the development of wire and cable industry in China.