Morning Bites (part 1)

🇨🇳 The output of power generation equipment in China increased 29% YoY in September, accelerating from the +23% YoY in August, per NBS data. The figure was also up 45% YoY in 9mo25

💴 Investment in China’s grid infrastructure declined 11% YoY in September (from the high base), reversing from the +26% YoY in August, but was still 10% higher YoY on a 9mo25 basis

We recap, that State Grid (which controls >80% of Chinese electricity transmission capacity) sees a 10% YoY CapEx increase in 2025 (in line with 9mo25 dynamics); however, historically, State Grid has often exceeded its investment guidance

On our numbers, the grid accounts for 10-15% of Al and Cu demand in China, so upbeat investment (due to the growing installations of renewable energy) are fundamentally supportive of demand for these base metals

#copper #aluminium