Analysts expect China's State Grid Corp of China, whose budget comprises 50% of the country's annual copper demand, to come good on promises to increase investment on the nation's electronic grid by 5% this year.
That amounts to 14 billion yuan ($2 billion) of extra spending, according to estimates which forecast a total investment of 524 billion yuan on expanding China's electronics infrastructure.
So far this year, Chinese state grid spending has underperformed by 19% against 2018 levels, adding to generally weak copper usage, mainly in wires and cables.
But analysts expect the spending to be back-loaded to the second half of the year, bringing with it a surge in consumption for the red metal.
"It's potentially a big plus for copper demand in China, which should affect copper prices positively in the coming months," Fastmarkets senior...