Copper consumption likely to receive support from power industry in Q4

Published: Aug 29, 2019 13:43

Save

China’s State Grid will accelerate its investment in order to meet its annual targets

SHANGHAI, Aug 29 (SMM) – Potential strength is expected in copper demand from the power industry in the fourth quarter as China’s State Grid will accelerate its investment in order to meet its annual targets.

By the end of July, realised investment by the State Grid stood at 202.1 billion yuan, only some 40% of its targets of 512.6 billion yuan for 2019. This marked the slowest pace in six years.

Data from China Electricity Council showed that the realised investment in power grid projects in the first seven months of this year shrank 13.9% from the same period last year. But the declines narrowed from a year-over-year drop of 19.3% in January-June, still indicating support to copper consumption.

The power industry accounts for around 46% of total copper consumption in China.

Copper consumption will also get a boost from the construction industry as China stepped up the efforts to renovate shantytown this year.

This was evidenced by the standout performance of the downstream wire and cable sector, whose operating rates climbed 1.78 percentage points from June to stand at 91.48% in July.

Market commentary Copper

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

17 hours ago

"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"

Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan

17 hours ago

"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.

17 hours ago

Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions

After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."

17 hours ago