China Increased Investment In Infrastructure Especially Construction of Clean Power Under "Dual Carbon” Goal, Yet Copper Demand Fails To Improve

Entering May, the demand for copper from the real estate industry has not improved, and new orders for civil engineering have also begun to decline. Although demand for copper wire and cable improved in May compared to April thanks to the deliveries to power grid companies and exports, the bid solicitation volume was still low. This indicates that new orders from traditional power grids in the second half of the year are not optimistic.

With regard to the clean energy industry, the cumulative investment in China's power supply projects from January to March was 126.4 billion yuan, a cumulative increase of 55.2% year-on-year. The installed capacity of solar power generation increased by 33.7% year-on-year. In order to ease the pressure from weakening real estate sector on economic growth, China has increased investment in infrastructure especially the construction of clean power under the background of "dual carbon” goal. 

Note: SMM surveyed 40 producers with a total production capacity of 3.11 million mt.

The operating rates at copper wire and cable plants are estimated to average 86.82% in May, up 1.29 percentage points month on month, and up 10.96 percentage points year on year.

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