Analysts think China's State Grid could release a major boost for copper in H2

The world's biggest copper consumer could be getting ready to start spending, analysts told Fastmarkets.

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...

Published

Archie Hunter

August 15, 2019

16:32 GMT

London