Disappointing power investment data raises concerns about Q4 copper demand

Published: Sep 26, 2019 16:18

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The power industry is the main driver behind copper consumption in China

SHANGHAI, Sep 26 (SMM) – Declines in China’s realised investment in power grid projects unexpectedly widened in the January-August period, and this clouded the outlook for copper consumption in the power industry in the fourth quarter.

Data from China Electricity Council on September 25 showed that the realised investment in power grid projects in the first eight months of this year shrank 15.2% from the same period last year, to stand at 237.8 billion yuan, after the figure dipped 13.9% year on year in January-July.

The power industry is the main driver behind copper consumption in China, accounting for around 46% of domestic copper demand, SMM learned.

By the end of August, the State Grid finished only 46% of its investment targets of 512.6 billion yuan for 2019. This marked the slowest pace in six years.

In January-August, investment in the power generation projects nationwide rose 5.2% year on year to 153.3 billion yuan. However, its spur to copper consumption fell far below that from the power grid investment.

Market commentary Copper Power

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