The upstream and downstream industries of the electrical equipment industry are mainly steel, non-ferrous metals, electrical components manufacturing and other industries, while the downstream industries include electric power, petroleum and petrochemical, metallurgy, rail transit and other industries of the national economy.
The correlation between the industry and the upstream industry As the upstream industry of the electrical equipment industry, the prices of electrical components, copper and steel directly affect the cost of electrical equipment. During the reporting period, there were a large number of production enterprises such as electrical components and steel, and the prices of production factors were relatively stable; during the reporting period, the price of copper fluctuated relatively greatly, which had a certain impact on the cost of products.
The correlation between the industry and the downstream industry The impact of the downstream industry on the electrical equipment industry is mainly reflected in the market demand. First-level load power consumption regional industry users (power grids, power plants, petroleum and petrochemicals, metallurgy, rail transit, large industrial and mining enterprises, etc.) have higher requirements for the safety and reliability of electrical equipment and the qualification and technical level of production enterprises, but are not sensitive to product prices. Third-tier power load market users are more extensive, the market space is large, downstream industry users are more sensitive to product prices. With the continuous adjustment of market demand, electrical equipment manufacturers will also face technological progress and survival of the fittest. The demand from the primary and secondary power load markets will give birth to a number of brand suppliers with advanced technology, excellent product quality and rich industry experience.