Unstable Factors in Magnet Wire Market(1)

Zhengzhou LP Industry Co., Ltd is a China professional manufacture of magnet wire. The performance of the company's products technical indicators have reached or exceeded national standards and Zhengzhou LP Industry Co., Ltd gets favourable comment by the majority of customers. But the development of electromagnetic industry exists some unstable factors.

The raw material price volatility.
Copper and aluminum is the most important raw material in cable industry. Price fluctuations will directly affect the profits of cable companies. Extreme cases even lead to business survival crisis.

The policy adjustments produce an effect on the supply and demand balance.
China is a market economy under the macro control. The introduction of the market and the adjustment of national industrial policy will have a significant impact on related industries. Nowadays, the cable industry and related industrial policies are mainly related to the power grid construction planning, railway network construction-related planning, automotive and advanced equipment manufacturing and new energy and other emerging industries of strategic planning, energy conservation class plan, in addition, also include the real estate the control and protection of housing construction and other policies.
However, the formulation and implementation of policy tend to be adjusted according to the actual development of the national economy and the industry. This adjustment will make the expected changes in market supply and demand, thus affecting the development of the cable industry.