Morning Bites (part 1)

🇨🇳 The output of power generation equipment in China increased 23% YoY in August, accelerating from the 5% YoY expansion in July, per NBS data. The figure was also up 48% YoY in 8mo25

💴 Investment in China’s grid infrastructure jumped 26% YoY in August (vs. the -1% YoY in July), being up 14% YoY on 8mo25 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