[BigBit Editorial] Since the beginning of this year, prices for various raw materials have continued to rise, dealing a severe blow to the real manufacturing sector. Insulated wire manufacturers are particularly burdened by soaring costs of plastic pellets, bare copper wire, and other key inputs.

　　In the magical year 2020, the price of bare copper soared relentlessly, showing no sign of restraint. This dealt a severe blow to both end‑product manufacturers and upstream insulated‑wire companies.

　　Rising copper prices are impacting numerous power‑supply and home‑appliance companies that rely heavily on copper materials, copper wire, and power cords. Naturally, other industries with substantial copper‑wire and copper‑material usage are also feeling the effects.

　　For home appliance companies like Galanz, with annual revenues in the tens of billions, and Xinbao and Aoma, each generating around ten billion yuan annually, rising costs still leave them with some room to absorb the impact. By contrast, smaller SMEs face much tougher challenges.

　　Zhongshan Letu Electrical Appliances is a small-to-medium-sized home‑appliance exporter with annual revenues of approximately RMB 100 million. Amid soaring orders and sharply rising costs, the company’s general manager, Li Mingyang, has been under considerable strain—most notably since the beginning of this year, when the price of bare copper has continued to climb.

　　Liang Mingyang told the media that at the end of March and the beginning of April this year, the spot price of copper was 39,000 yuan per ton. By October 20, the spot price had risen to 51,700 yuan per ton, up 32.56% from the previous month.

　　Liang Mingyang stated that their net profit margin is only 4%, with some products falling even lower, and the cost increases due to exchange rate fluctuations alone have already eroded their profits. Another industry insider added that, from a pricing perspective, export‑bound refrigerators “absolutely must raise prices; without a price hike, it’s simply impossible to turn a profit.”

　　Although Letao Electrical expects fan orders in 2021 to be 50% higher than in 2020, due to rising material prices, a strong RMB exchange rate, increasing labor costs, and higher factory rents, Li Mingyang anticipates that the company will post a loss next year.

　　As a consumer‑electronics manufacturer, Xinbao Co., Ltd. mitigates the pressure of rising costs through capacity optimization and automated production. Over the past two years, the company has ramped up its investment in automation while annually introducing new products to customers, ensuring price stability and maintaining profitability.

　　Galanz is also vigorously advancing smart manufacturing. This year, it launched the construction of an Industry 4.0 base at its Shunde headquarters. Meanwhile, the Shan Refrigerator Factory plans to increase its production capacity by 50% next year, primarily through enhanced automation and lean‑production practices, and has introduced a new lineup of products, including breakfast makers.

　　In fact, with the surge in raw copper prices, insulation wire manufacturers are the first to bear the brunt—truly facing unbearable hardships!

　　In response to the sharp rise in copper prices, Magnetic Components & Power recently conducted a series of interviews with numerous industry professionals involved in the production of enameled wire, confirming this trend. A sales representative at a Shenzhen-based manufacturer of triple‑layer enameled wire told reporters that at the beginning of this year, copper wire was priced at just over 30,000 yuan per ton, whereas today the price has climbed to nearly 60,000 yuan per ton.

　　Insulated wire manufacturers were caught off guard—no one expected copper prices to defy all expectations, leaving even their pre‑emptive inventory‑building efforts too late to make a difference.

　　The rapid surge in costs is difficult for any insulation wire company to absorb in the short term.

　　Even amid a doubling of raw copper wire prices, no insulation‑wire manufacturer dares to raise current product prices—such is the current state of the industry. Faced with this fiercely competitive landscape, numerous industry insiders interviewed by reporters can only express deep helplessness. They urgently call for the sector to establish unified standards, unite in purpose, and collaboratively chart a path toward sustainable growth, ensuring coordinated action as the entire industry grapples with mounting cost pressures.

　　They all hope for a unified organization or mechanism to coordinate the insulation wire industry and guide it toward more harmonious development.