Morning Bites (part 1)

🇨🇳 The output of power generation equipment in China rose 5% YoY in July, decelerating from the +22% YoY in June, per NBS data. The figure was also up 52% YoY in 7mo25

💴 Investment in China’s grid infrastructure slid 1% YoY in July (vs. the +4% YoY in June), but was up 12% YoY on 7mo25 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