Cable raw material copper, trend analysis in July

Analysis of the main products of cable raw materials (copper): According to the monitoring data of the cable network, the domestic spot copper price continued to fall sharply in July, and the overall copper price fell during the month. The average spot copper price in the beginning of the month was 42585. RMB/ton, the average spot copper price at the end of the month was 39,030 yuan/ton, and the price dropped by 3555 yuan/ton, a decrease of about 8.35%.

Macroscopically, abroad, the minutes of the Federal Reserve’s June meeting announced recently confirmed the recovery of the US economy. The Federal Reserve’s interest rate hike in September may intensify. This topic may still be the focus of the market in August. However, the US GDP in the second quarter fell short of expectations. It was not easy to realize the interest rate hike in September. What is more certain is that the strength of the US dollar will not change, which may trigger a new round of upsurge of funds leaving the commodity market, which will also put pressure on copper prices. On the domestic front, the current Chinese economy is still operating at a low level. Although the Chinese government continues to introduce loose monetary policy in the second half of the year, it has limited room for short-term boost to the real economy. Therefore, the copper market may still be under pressure in the first half of August. When the off-peak season alternates, copper prices may rebound.

Market: Since the second quarter, the downstream operating rate has gradually increased, and through the arrival of the peak season of copper pipes and other industries, the overall market turnover has improved, but year by year, this year’s peak season is not busy. Affected by the weakening of consumption in the off-season in July and the weakness of China’s economy, spot copper prices have dropped sharply, but merchants’ adjustments have remained stable and no selling has been seen. After the copper price hit a new low, suppliers are reluctant to sell. When copper supply has shrunk, consumption has shrunk, and the overall economy is severely severe, copper prices are unable to rebound, and the subsequent continued decline may break through.

Inventory: LME and Shanghai copper inventories continued to show a slight growth trend this month. The latest statistical data shows that LME copper stocks reported 345,475 tons, which is a bit higher than before; while in the past week, Shanghai copper stocks on the Shanghai Futures Exchange increased slightly to 103,117 tons. Inventory has been in a downward channel for several months, but it increased slightly in July. The growth in July may be related to the recent cross-market arbitrage. Due to the continued profitability of imports, the positive arbitrage of buying LME copper and selling Shanghai copper has the opportunity. This may attract some traders to ship the goods to the warehouse, but the overall amount of change is not large. . At present, the overall supply pressure of copper is not great, and the difficulty of copper price upwards still comes from the shrinkage of the demand side.cable cu

Outlook forecast: July economic indicators have been significantly eased compared to the previous month, but the market focus has remained on the economic side. The recent US data has been weak and unfavorable, but the dollar is still strong, putting pressure on basic metals such as copper, plus China Copper consumption has always been in a weak position, which has greatly reduced global copper consumption. Therefore, copper prices have been unable to rebound and have fallen frequently. In the short term, there is still room for rebound in copper prices, but in the long run, US interest rate hikes have reached the long-term strength of the US dollar index, coupled with the copper market demand has not yet recovered significantly, copper prices will weaken again later.

What is the basic structure of the cable?

One is the conductor structure.The conductor of cable is usually made of high purity copper or aluminum of certain toughness and strength with good electrical conductivity. Conductor sections are commonly used in circles and sectors. A conductor with a smaller section (less than 16 square meters) is made of a single copper wire, while a conductor with a larger section (16 square meters or more) is made of several copper wires twisted in fractional layers. When twisted, the twisted direction of the two adjacent layers is opposite.Cable structure


The second is the insulation layer of the cable.The insulation layer of cable is used to make the multi-core conductor and conductor and sheath mutually isolated, and to ensure a certain electrical compressive strength, it should have a certain heat resistance and stable insulation quality.
The thickness of the insulating layer is related to the working voltage. Generally speaking, the higher the voltage level is, the thicker the insulation layer will be, but not in direct proportion.Cable structure


Third, cable sheath.So that the cable insulation is not damaged, and to meet the requirements of various use conditions and environment, divided into inner sheath and outer sheath.Inner sheath is a protective covering covering the cable insulation to prevent the insulation from being affected by moisture, mechanical damage, light and chemical corrosive media, etc., and can also flow through short-circuit current. Common inner protective layer has non-metallic polyethylene sheath, polyvinyl chloride sheath, metal corrugated aluminum sheath and so on.Outer sheath is the protective covering layer outside the inner sheath of the cable, which mainly plays the role of mechanical strengthening and anti-corrosion. The outer sheath is usually composed of metal tape armor or wire armor plus polyvinyl chloride or polyethylene sheath.Cable structure

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What are the advantages of environmental friendly cables?

What are the advantages of environmentally friendly cables compared to other traditional cables? Compared with ordinary cables, environmentally friendly cables have the following advantages:

The first is to have high flame retardancy. We all know that the flame retardant performance of the cable is very important. It fully ensures the safety and fire resistance of the cable. The cable is not easy to burn and catch fire, and can prevent the flame from expanding.

The second is halogen free, green insulation, special oxygen barrier material, not only has good electrical performance, mechanical properties, and to ensure that the product does not contain halogen, to prevent the formation of traditional PVC wire burning in the combustion process to produce cancer-causing dioxins British materials to prevent secondary pollution.

The third is a new environment-friendly coated wire and cable material that is free of odor and corrosive odor, does not contain hydrochloric acid and other toxic gases, and produces no pollution to the environment. It will not produce or emit very little during the use and combustion. Acidic gas, to ensure the safety of personnel and reduce environmental protection features such as equipment damage.

The fourth one is high light transmittance. The smoke produced by burning environmentally friendly cables is very thin, which is helpful for evacuation and fire fighting. The light transmittance of the product is greater than 40%, much higher than that of the traditional flame-retardant cable and the light transmittance is lower than 20% or even higher.

The last one is the environmental protection type cable waterproof and ultraviolet protection performance, environmental protection type wire and cable special molecular structure, to ensure the production of ultra-low water absorption . Special ultraviolet absorber makes the product have good anti-ultraviolet performance。

What is AAC cable ?

AAC cable products have been in the western market for many years, largely because the company needs cheap cables in order to save money. Because aluminum costs less than copper, AAC cables are ge detecty cheaper than all copper products. As a result, many buyers with tight budgets will look for cheaper and more cost-effective cable products. They may not realize that what they are receiving is substandard solid copper cables

It’s not hard for communication wholesalers and distributors to find these products on the Internet. Frank peri, executive director of AAAC, said the organization provides best practices and important information related to high-quality communication cables, connection equipment and related products. Suppliers provide non-standard cable products at a significantly lower price than standard products. Some suppliers sell both standard and non-standard cables. Pei pointed out that some industries and applications approve and are suitable for using AAC, but what we need to solve is the situation that is not suitable for using AAC cable.