Aluminium to Make Further Inroads in Power Cable Industry to Substitute Copper

SHANGHAI, Nov. 28 (SMM) – With huge aluminium power cable production capacities coming on stream in China, the lightweight metal is set to make further inroads in power cable industry to substitute copper, Shanghai Metals Market foresees.

As uniform standards for all aluminium alloy conductors (AAAC) are being studied by Chinese government and are expected to be issued in the near future, substitution of copper by aluminium in power cables ``has become a sensitive and important topic’’, said Angela Wang, head of SMM’s copper desk.

The proportion of aluminium power cables used in civil lighting, in particular, would increase as lower-income population opt for cheaper aluminium wires, Wang said. The market would favor copper cables again with increases in national and average household incomes, she added.

The State Grid Corp. of China has been inviting bids for aluminium wires and cables used in ultra high voltage (UHV) grid network construction, she also noted.

China is experiencing an investment wave in aluminium power cables with overcapacity looming in the sector, SMM reported in September. The resistivity of aluminum alloy conductor is lower than that of aluminum conductor, since it is made by adding other elements such as rare earth and steel, a top official at Shanghai Shenghua Cable Group told SMM in an interview.

Still, Zhou Sheng, an official at International Copper Study Group (ICSG) said during the Asia Copper Week earlier this month that copper would not be readily replaced by aluminium in power cables for its unique conductivity and recyclability.