The amount of copper wire and cable industry analysis and forecast 
wire and cable industry will usher in a new period of development, which will also drive the demand for copper, the formation of copper support. Some insight on the wire and cable industry development prospects, expected in March 2006, wire and cable industry will start to recover, then will lead to rise in copper prices. 
China's wire and cable industry after 50 years of construction, especially since the reform and opening up 20 years of rapid development, has been in the national economy occupies a very important position, the machinery industry, second only to the automotive industry, the second largest industry in the international arena after the United States, becoming the world's second largest producer of wire and cable. 
China in recent years to promote the use of energy efficient electrical, power cables with the developed countries and the international advanced level gap significantly, largely with whether to use energy-efficient materials and technologies. A survey shows that the copper industry applications in the United States increased by 5% per year, France, Germany, Italy and the United Kingdom increased by 2.3% -4.2% per year. To narrow the country with the international advanced level in the energy level gaps, through promoting the use of energy-efficient electrical products and copper wire and cable and get a huge energy saving potential. 
Due to copper in the power transmission has the excellent performance have been widely used as insulation and non-insulated cable, transmission of high, medium and low voltage, and other materials as a measure of conductivity. Copper has excellent flexibility, corrosion resistance, ductility and other properties renewable, making it the most preferred construction safety wire.Copper is efficient motors and transformers important part, but also in the manufacturing, transportation and home environment has a wide range of applications. 
According to expert estimates, in 2005 China's population will reach 270 billion kwh of electricity. Power sector data show that in recent years there has been a shortage of electricity supply situation, while residential electricity demand increased dramatically, in some places the old line overwhelmed, tripping and other accidents frequent. Information collected from years of statistics found that France and China electrical accident death toll contrast, China is France's 400 times. From the fire department's statistics show that the number of electrical fires accounted for has also increased fire rate has reached 30%, while the natural superiority of copper wire can be largely reduced this growth trend. 
China's copper demand from the current structure, the largest share of the electric power industry, more than 50%, mainly used for wire and cables, transformers, switches, connectors, etc.. Where demand for copper wire and cable accounted for over 90% of the electric power industry. Therefore, the development of wire and cable industry will undoubtedly affect copper demand and prices. 
According to statistics, in 2002, Chinese cable industry with a capacity of 1.4 million tons of copper in 2003, 1.6 million tons, 1.76 million tons in 2004, 2005 may be expected to reach 200 million tons. 
A large amount of copper cables generally the country's total copper production of about 65% to 70%. Expected by 2010, China copper cable industry will continue to increase more than 10% per year rate of increase. 
Wire and cable industry is supporting the industry, its development and the pace of development of the national economy are closely related, but also with the development of the primary industry is closely related to several major consumer of wire and cable industry will give the development of wire and cable with to opportunities. 
With the end of the rural power grid renovation project, China will enter the backbone network, the city power grid construction peak. Besides electric power, hydropower, power plant construction and telecommunications industries, will give wire and cable and opportunities. According to preliminary meta-analysis, China's "Eleventh Five-Year" period of the grid total investment will reach 1.2 trillion yuan, will be added during the 330KV and above transmission lines 60,000 km. According to the 2020 goal of quadrupling the national economy development plan, the national annual increase electricity installed capacity of about 35 million ~ 40 million kilowatts installed capacity and power generation capacity by about 10% annual growth. Along with the rapid expansion of basic infrastructure and the rapid development of equipment manufacturing, transportation, construction, household appliances industry, the automotive industry, etc. will be an annual growth rate of more than 10%, electrical manufacturing, shipbuilding and so on will take a 6% to 8% growth rate, the amount of various types of equipment using cables will increase significantly. Power construction investment from a point of view, if the installed capacity of 40 million kilowatts per year, then the only medium voltage XLPE cable will need 120,000 kilometers, the amount of copper amounted to nearly 10 million tons. In the early 2000s to become one of the pillar industries of China's construction industry will also bring opportunities for the development of the cable industry. 2008 Beijing Olympic Games and 2010 Shanghai World Expo will be the two major opportunity. According to statistics, in 2008 ago, Beijing wants to build 32 stadiums, construction area of 2.43 million square meters, worth 223 million yuan need to wire and cable, with copper demand up to 2300 tons. In addition, there are 59 required to build a training center, hotels, etc., a conservative estimate, the entire service at Olympic venues cable will reach 685 million yuan, copper consumption will reach 7,000 tons. Preliminary estimates, the 2010 Shanghai World Expo will be more than the amount of copper Beijing Olympics. 
Automotive industry as one of state support, will lead to increased vehicle line. At present vehicle line about 150,000 kilometers, the output value of about 60 million yuan. The future will be more than 10% growth rate. China's accession to WTO, as the global sourcing of auto parts to automobile production line opportunities and challenges, the problem is not yet fully meet the domestic automobile automotive wiring harness manufacturing requirements. 2004 China's auto production reached 5.07 million, vehicle production is expected in 2005 will be more than 580 million. According to the average per vehicle wire 1500 yuan terms, this car wire will reach nearly 90 billion yuan, oxygen-free copper wire wires per vehicle 22.5kg calculations, in 2005 the amount of the entire automotive oxygen-free copper wire will reach more than 13 tons. 
Wire and cable industry will usher in a new period of development, which will also drive the demand for copper, the formation of copper support. Some insight on the wire and cable industry development prospects, expected in March 2006, wire and cable industry will start to recover, then will lead to rise in copper prices.

This article reprinted from China Industry Research Network