The price of raw materials fluctuated sharply. Copper and aluminum are important raw materials for the wire and cable industry. The sharp fluctuations in their prices will directly affect the profitability of cable companies, and in extreme cases, they will lead to a crisis of survival for the companies.
Second, the impact of policy adjustments on the balance of supply and demand. China is a market economy under macro-control. The introduction and adjustment of national industrial policies will have a serious impact on related industries. At present, the industrial policies related to the cable industry mainly include related plans for the establishment of power grids, related plans for the establishment of railway networks, strategic emerging industry plans such as automobile and advanced equipment manufacturing and new energy, and plans for energy conservation and emission reduction. The development of these industries will be directly Affects the demand for wires and cables. However, since the formulation and implementation of policies often stop corresponding adjustments based on the development of national economy and industry theory, such adjustments will cause the expected supply and demand of the market to change, thereby affecting the development of the cable industry.
Third, the sustainability of the global economic recovery. Major global economies are in the process of recovery, but the recovery situation is more complicated: the US recovery is weak, housing and manufacturing are sluggish, and inflation is rising from time to time. The current debt and fiscal deficits have cast a shadow on the US economy; Europe The frequent debt crisis, high inflation, and signs of economic weakness have made the European Central Bank's monetary policy makers a dilemma; China's economic growth is relatively stable, but inflation is the main problem at the moment, and the economy has gone under continuous tightening policies. Weak, domestic cable companies' capital turnover fluctuated, and the living environment deteriorated from time to time.
