At the beginning of 2007 , subject to inventory sustaining increase, LME Copper Futures in March were weakening, and declined some extent . If copper price fell by 10% , we estimate that the gross profit of transformer industry will rise by 2.5-3% in 2007. Transformer demand will continue to maintain rapid growth The delayed construction of power network, so that is a serious threat to network security. We estimate that the network investment promotion, the capacity ratio of substation equipment and power generation equipment will gradually rise. The next 10 years, the power transmission equipment will enter a period of rapid development and the upgrading of equipment, large-capacity, EHV transmission line construction, urban network,s transformation, will bring tremendous business opportunities. Transformer contracts are signed generally ahead of six months or a year, the large project required to sign ahead of 1 -2 years. In 2007, the fall of copper price, transformers enterprises will recover the losses for 2005, 2006, and welcome a harvest year.