Morning Bites (part 1)

🇨🇳 The output of power generation equipment in China increased 7% YoY in October, vs. the expansion of 29% YoY in September, per NBS data. The figure was also up 40% YoY in 10mo25

💴 Investment in China’s grid infrastructure declined 14% YoY in October, vs. the decrease of 11% YoY in September, but was still 7% higher YoY on a 10mo25 basis

State Grid, which controls >80% of Chinese electricity transmission capacity, guides for a 10% YoY capex increase in 2025 (broadly in line with 10mo25 dynamics)

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