Exploring the composition system and pricing logic of cable cost price

China [CN]

Product Overview: In the process of power transmission and industrial development, cables are indispensable "blood vessels". The cost price of cables not only affects the project budget, but also affects the interests and decisions of the entire industrial chain. However, the cost price of cables is not a simple accumulation of materials, but a complex result of multiple factors such as raw material fluctuations, production processes, and market supply and demand. In order to unveil the mystery of cable cost price, this article will deeply analyze its composition and pricing logic from multiple dimensions to help you see the deep logic behind the price.

The cost price of cables is affected by many factors, including raw material costs, production processes, transportation costs, taxes, etc. The following is a specific analysis:

Raw material cost

Conductor material: The conductor of the cable is usually copper or aluminum. Copper has good conductivity and high mechanical strength, but the price is relatively high; aluminum has a lower price and low density, but its conductivity is not as good as copper. Taking the common copper core cable as an example, the cost of copper may account for about 50%-70% of the total cost.

Insulation materials: Common insulation materials include polyvinyl chloride (PVC), cross-linked polyethylene (XLPE), ethylene propylene rubber (EPR), etc. Different insulation materials have different performance and prices. Generally speaking, PVC insulation materials are relatively cheap, while XLPE and EPR insulation materials have better performance and are relatively expensive. The cost of insulation materials usually accounts for 10%-20% of the total cost of the cable.

Sheath materials: Sheath materials are used to protect cables from external environmental influences, such as mechanical damage, moisture intrusion, etc. Common sheath materials include PVC, polyethylene (PE), etc. The cost of sheath materials accounts for a small proportion of the total cost, generally around 5%-10%.

Production process cost

Manufacturing equipment: Cable production requires the use of a series of professional equipment, such as wire drawing machines, stranding machines, extruders, cabling machines, etc. The purchase, maintenance and depreciation costs of these equipment will be allocated to the production cost of the cable.

Production energy consumption: Power consumption and steam consumption during the production process are also part of the cost. For example, in the extrusion process of cables, a large amount of electricity is consumed to heat and extrude the insulation and sheath materials.

Labor costs: including wages, benefits, training and other expenses of production workers, technicians, managers, etc. Cables with complex production processes and high technical requirements have relatively high labor costs.

Transportation costs: Cables are large in size and heavy in weight, and transportation costs cannot be ignored. Factors such as transportation distance, transportation mode (such as road transportation, rail transportation, water transportation, etc.) and transportation volume will affect transportation costs. Generally speaking, the unit transportation cost of long-distance transportation and small-batch transportation is higher.

Taxes and administrative expenses

Taxes: Cable manufacturers need to pay various taxes and fees, such as value-added tax, income tax, urban maintenance and construction tax, etc. These taxes and fees will increase the cost of cables.

Administrative expenses: including the expenses of the company's administrative management, financial management, sales management, etc. The level of administrative expenses is related to factors such as the scale and management level of the company.

Taking the common YJV22 - 0.6/1kV - 4×185mm² cable as an example, its cost price is about 100-120 yuan/meter. Of course, this is just a rough estimate, and the actual cost may vary depending on market conditions, manufacturers, purchase quantity and other factors. To learn about professional cable manufacturers, please visit: https://www.omgevcable.com