Chinese Producers Take Wait-and-See Attitude towards Aluminum’s Substitution for Copper in Wire & Cable Production

SHANGHAI, Sept. 4 (SMM) – Chinese companies have stepped up R&D in replacing copper with aluminum alloy during wire and cable production, attracted by the lower costs. However, SMM’s latest survey shows most Chinese wire and cable producers are taking a wait-and-see stance towards the substitution of aluminum for copper, due to the absence of national standards for aluminum alloy wire used in power cable.

Zhejiang Wanma Co. has reported produced to first aluminum alloy power cable, and Jiangsu Tongguang Electronic Wire & Cable and Hunan Goldcup Electric Apparatus Technology are also accelerating development of aluminum alloy cable. However, Guangzhou Xinxing Cables industry which was rumored to introduce aluminum alloy cable production line declined to comment when asked about progress on the matter.

SMM’s survey of Chinese wire and cable producers reveals that the R&D investment in aluminum alloy cable is actually high despite the low raw material costs.

In addition, most wire and cable producers are only watching from the sidelines as the national standards for aluminum alloy wire have not been issued.

The national standards for aluminum alloy wire applied in power cable are expected to be released in late October.