Why is the price of wire and cable high and low?

2023-06-24

1. Fluctuations in the price of copper, aluminum and other metals directly affect the production cost of wire and cable

The price of these metals fluctuates with the market, and if the order is large, the slightest change in the price of the metal can make a big difference. Customers often sign orders at high prices, but the price of copper falls during the production process, so they buy more expensive. In this regard, experts recommend paying attention to the changing trend of metal prices in advance to prevent their own losses. 2. Macro-control policies for real estate
In the past two years, real estate prices have skyrocketed, and the booming real estate sales have greatly increased the orders for wire and cable, so the price of wire and cable has risen to meet the short supply of the market. In recent years, after the real estate prices soared, a series of measures have been taken to control the real estate, such as purchase restriction policy, the real estate depression has greatly affected the relevant industries, the demand for wire and cable has been reduced a lot, so the price of wire and cable has also been reduced.
3. The emergence of new sales models such as e-commerce reduces sales costs
Nowadays, e-commerce in the sales industry has become a sales model that major enterprises are willing to adopt. In this way, direct sales of wire and cable manufacturers eliminate the cost of sales personnel to run the business, eliminate the sale link of signing contracts, urging delivery, etc., and directly reduce the cost of sales, so the price of wire and cable will be reduced, small profits and quick sales, which is beneficial to cable manufacturers and buyers.

Source: SM Wire and cable