Macquarie: China's National Power Grid Will Buoy Copper, Aluminum Use-Shanghai Metals Market

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Macquarie: China's National Power Grid Will Buoy Copper, Aluminum Use

SMM Insight 01:12:16PM Dec 13, 2010 Source:SMM

SHANGHAI, Dec. 13 (SMM) -- Macquarie analyst Max Layton said on December 6th that China's overall copper demand is expected to increase to 7.74 million mt in 2011 and copper usage by the national grid may rise to over 1 million mt.  Aluminum demand from the national grid may also increase by 500 kt to 1 million mt in 2011, to reach between 2.5-3 million mt.

SMM sources report overall demand in 2010 from the national grid for steel-cored aluminum strand wire fell significantly from 2009 levels.  Previously, China's Central Government introduced a series of measures to boost domestic demand, including renovation of rural power grids, resulting in large-scale expansion of steel-cored aluminum strand wire production capacity, but causing oversupply and over-capacity.  Some small-scale producers have been forced to close due to fierce competition since early 2010, and operating rates at medium and large-scale producers have been low as well.  

 

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None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn

Key Words:  Aluminum Al  copper Cu  NDRC 

Macquarie: China's National Power Grid Will Buoy Copper, Aluminum Use

SMM Insight 01:12:16PM Dec 13, 2010 Source:SMM

SHANGHAI, Dec. 13 (SMM) -- Macquarie analyst Max Layton said on December 6th that China's overall copper demand is expected to increase to 7.74 million mt in 2011 and copper usage by the national grid may rise to over 1 million mt.  Aluminum demand from the national grid may also increase by 500 kt to 1 million mt in 2011, to reach between 2.5-3 million mt.

SMM sources report overall demand in 2010 from the national grid for steel-cored aluminum strand wire fell significantly from 2009 levels.  Previously, China's Central Government introduced a series of measures to boost domestic demand, including renovation of rural power grids, resulting in large-scale expansion of steel-cored aluminum strand wire production capacity, but causing oversupply and over-capacity.  Some small-scale producers have been forced to close due to fierce competition since early 2010, and operating rates at medium and large-scale producers have been low as well.  

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn

Key Words:  Aluminum Al  copper Cu  NDRC