China's wire and cable industry after 50 years of construction, especially since the reform and opening up 20 years of rapid development, has occupied a very important position in the national economy, is second only to the automotive industry in the machinery industry, the second largest industry in the world is also second only to the United States, becoming the world's second largest wire and cable producer. From the current structure of copper demand in China, the power industry accounts for the largest share, more than 50%, mainly used for wires and cables, transformers, switches, connectors and so on. Among them, the demand for copper in wire and cable accounts for more than 90% of the power industry. Therefore, the development of the wire and cable industry will undoubtedly affect the demand and price of copper. According to statistics, the total amount of copper used in China's cable industry in 2004 was about 170 million tons, and it is expected to reach 2 million tons in 2005. The wire and cable industry is a supporting industry. Its development is closely related to the development speed of the national economy, and it is also closely related to the development of the main industry. The development of the following major consumer industries of wire and cable will bring opportunities to the development of wire and cable.

With the end of the rural power grid renovation project, China will enter the peak period of construction of the main power grid and urban power grid. In addition, the construction of power transmission from west to east, hydropower stations, power stations and the development of telecommunications industry will bring opportunities to wires and cables. According to preliminary summary analysis, the total investment in China's power grid during the "Eleventh Five-Year Plan" period will reach 1.2 trillion billion yuan, during which 60000 kilometers of transmission lines of 330 kV and above will be added. The construction industry, which has become one of China's pillar industries at the beginning of the 21st century, will also bring opportunities to the development of the cable industry. The 2008 Beijing Olympic Games and the 2010 Shanghai World Expo will be two major opportunities. According to statistics, before 2008, Beijing will build 32 competition venues with a construction area of 2.43 million square meters. The value of wires and cables will be 0.223 billion, and the demand for copper will reach 2300 tons. In addition, there are 59 training venues and hotels to be built. It is conservatively estimated that the amount of cables serving the Olympic venues will reach 0.685 billion and the amount of copper will reach 7000 tons. It is preliminarily estimated that the amount of copper used in the 2010 Shanghai World Expo will exceed that of the Beijing Olympics. The development of the automobile industry, which has become a new economic growth point in China, will also drive the development of the cable industry. In 2004, China's automobile production reached 5.07 million, and it is estimated that the automobile production will be more than 580 million in 2005. According to the average wire used by each car is 1500 yuan, the wire used by cars will reach nearly 9 billion this year. According to the calculation of 22.5kg of oxygen-free copper wire used by each car, the consumption of oxygen-free copper wire in the whole automobile industry will reach more than 130,000 tons in 2005. The wire and cable industry will usher in a new period of development, which will also drive the demand for copper and form a support for copper prices. Mr. Sun Yaoming, general manager of Octagon Electric Group, is optimistic about the development prospects of the wire and cable industry. He expects that by March next year, the wire and cable industry will begin to recover, which will drive up copper prices.