Development Status of Mine Cables
After several years of high-speed development, China's mining cable has formed a considerable scale, but because the production capacity is greater than the demand, there is a situation of oversupply. Production capacity has greatly exceeded this year's forecast demand value, while wire and cable enterprises are facing the urgent need to improve the technical content of products.
1. In recent years, the low-level repetitive construction has not paid enough attention to the adjustment of product structure in the wire and cable industry. The contradiction of product structure is still prominent, and the high-level products can not meet the needs. For example, from a broad perspective, bare wire production accounts for nearly one fifth of China's total, while developed countries account for only one tenth. In bare wires, overhead wires and ordinary steel-cored aluminium strands account for the vast majority.
2. There are more than 700 enterprises with low economic benefits in the whole industry, with a loss of more than 1/4. In 1991, the sales income tax rate of the industry was 11.7%, which dropped to 5% in 1995. Because of the successive decline in benefits and the increase of loss-making enterprises, the industry is generally short of funds, with an average asset-liability ratio of up to 70%.
3. Scale growth is excessive, the overall capacity of the wire and cable industry is more than twice the demand, and the predicted demand of various products in 2000 is less than the production capacity.