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Analysis Of The Current Situation Of China's Copper Rod Market

Mar 23, 2019

Copper rods are mainly used to produce wire and cable (wires, cables, bare wires, enameled wires, etc.), winding wires, and electrical equipment wires. Copper rod wire is the largest variety of copper processed materials, accounting for 38% of total copper processed materials. With the upgrading of the national grid, copper rods will usher in new development opportunities.

Relevant data show that in the past five years, China's copper rod and wire production has an average annual growth rate of 11.5%. At present, there are more than 1,500 copper rod and wire rod production enterprises in China, with a total production capacity of 8 million t/a, including anaerobic and low-oxygen copper. The poles are each 4 million tons. Related enterprises newly built copper rod projects are easy to use waste copper to produce low-oxygen copper rods, and introduce advanced foreign technology and equipment to ensure high-quality products, in order to improve product market competitiveness and project profitability.

The National Twelfth Five-Year Plan for Smart Grid has provided guarantee for the development of China's copper rod market. The 1.6 trillion investment in the plan will greatly promote the consumption of wire and cable and further stimulate the consumption of copper rods. The centralized bidding for smart grid construction is a big stimulus for industrial chain enterprises. In the past two years, with the rapid expansion of production capacity, the current copper rod market competition in China is mainly reflected in product quality, price, scale and after-sales service. For enterprises, the development of independent innovation technology is imperative.

China's domestic copper rod production process is mature, and there are two kinds of copper rod production processes with large production capacity: the above-mentioned oxygen-free copper rod process, continuous casting and rolling low-oxygen copper rod process. Up to now, China has already had an annual production capacity of about 4 million tons of oxygen-free copper rods and low-oxygen copper rods. At present, the competition in the copper rod market is fierce. The actual production capacity of domestic low-oxygen copper rods is far greater than the actual demand capacity. The domestic production of oxygen-free copper rods has developed rapidly in just a few years, which has formed a huge impact on low-oxygen copper rods. . With the tightening of policies and the introduction of various regulations, the requirements for recycled copper rod manufacturers are also constantly improving, and enterprises have the need to improve technical equipment.