Morning Bites (part 2)

🇨🇳China’s grid accelerated its purchases of aluminium wire in early 2024, as a cheaper substitute for copper, Bloomberg reports. According to industry executives, China's State Grid (>80% of local electricity supplies) slowed its purchases of copper wire in recent months, as the red metal's prices remain near all time highs (at spot, +62% vs. 2019 level). At the same time, the State Grid’s tenders for aluminum cables rose 40% YoY, to 718kt in 4mo24

In our view, if China did start widely substituting copper with aluminium in its power networks, aluminum prices would enjoy material support. To recap, the grid accounts for 10-15% of Cu and Al consumption in China, on our numbers

#copper #aluminium  
https://metals-wire.com/news-reports