Morning Bites

🇨🇳Investment in China’s grid infrastructure slid 2% YoY in April, after the +18% YoY in March, per NBS AA data. The figure was also up 15% YoY in 4mo25. On our numbers, the grid accounts for 10-15% of Al and Cu demand in China, so upbeat investments (due to the growing installations of renewable energy) are fundamentally supportive of demand for these base metals

Although State Grid sees only a 10% YoY CapEx increase in 2025, the actual figure might be higher, in our view: historically, the company has often exceeded its investment guidance

🥈Solar panel installations in China surged 3.2x YoY in April, vs. +65% YoY in March, per NEA data, as some subsidies were planned to expire in May-June to alleviate pressure on grid. The figure was also up 61% YoY in 4mo25. Given the solid demand for renewable energy in China, we maintain our positive view on silver, Cu and Al, which are the key beneficiary metals of the proposed global transition to clean energy in 2024-30

#silver #copper #aluminium