Morning Bites (part 2)

🇨🇳 The output of power generation equipment in China surged 51% YoY in May, vs. the 2.2x YoY growth in April, per NBS data. The figure was also up 78% YoY in 5mo25. Meanwhile, investment in China’s grid infrastructure jumped 33% YoY in May (vs. the -2% YoY in April) and was up 20% YoY on 5mo25 basis

Although State Grid (which controls >80% of Chinese electricity transmission capacity) 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

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

#copper #aluminium