China’s investment in power grid drops 16% YoY in May

SHANGHAI, Jun 25 (SMM) – China invested 35.4 billion yuan in power grid projects in May, the National Energy Administration reported on Monday June 24. This was down 16% from May 2018.

Realised investment in power grid projects amounted to 115.7 billion yuan in the first five months of the year, down 18% from the same period last year.

Transmission lines with a minimum of 220 kV were extended by 2,754 km in May, down 45% year on year, and by 10,721 km in January-May, down 24% from a year ago.

Power grid data for June are expected to pick up, given a slew of ultra-high voltage projects issued earlier this year.

Most aluminium wire, cable producers told SMM that this year’s orders improved from 2018, and expected an increase of some 15% in output for the year.

Producers swung into high gear in June as orders from ultra-high voltage projects are scheduled to be delivered in July-September.

Higher processing fees for aluminium billets also reflected strong demand for aluminium from the power sector.

Aluminium billet processing fees climbed some 160 yuan/mt in June, the third growth since the Chinese New Year holiday.