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

Apr 3, 2026 19:10

Chile's Water Crisis Threatens Atacama's Copper and Lithium Mining Amid 14-Year Drought

Chile’s most pressing crisis at present is the issue of water resources. The Atacama Desert in Chile is one of the driest regions in the world and also the core area for copper and lithium ore extraction. The local area has experienced a drought for as long as 14 years, and reservoir storage has fallen to only about 30%. For miners, water resources are not a secondary issue, but an indispensable key production factor in such processes as ore processing, dust suppression, and equipment cooling. The decline in ore grade has further exacerbated the predicament

Apr 3, 2026 19:10

Apr 3, 2026 19:09

Trump Adjusts Metal Tariffs, Applies 50% Rate to Consumer Prices Under Section 232, Details Unclear

US President Trump adjusted the national security tariffs on imports of steel, aluminum, and copper, lowering the tariff rates on derivative products made from these metals, streamlining compliance procedures, and preventing the declared value of imports from being understated.A senior Trump administration official said that, under a proclamation signed by Trump, the US would continue to maintain a 50% import tariff on imports of metal commodities such as steel, aluminum, and copper pursuant to Section 232 of the Trade Act of 1974, but would apply this rate to the price paid by US consumers. It is currently unclear how the selling price—and the resulting tariffs—would be determined.

Apr 3, 2026 19:09

Apr 3, 2026 19:08

Barrick Confirms 2028 Production Target for Reko Diq Copper-Gold Project in Pakistan Despite Budget Concerns

Barrick Mining said that its Reko Diq copper-gold project in Pakistan still plans to achieve first production by the end of 2028.The project is a large-scale copper-gold project jointly developed by Barrick, the Pakistani government, and relevant joint venture partners, and is located in Balochistan, Pakistan. Although the company had previously warned that the capital budget previously disclosed for the project's two phases could face a significant increase, the 2028 production commencement target remained unchanged.

Apr 3, 2026 19:08