Morning Bites (part 2)

🇨🇳The State Grid of China plans to increase capex 40% in 2026-30 vs. the 2021-25 level, as part of the country’s efforts to expand its power network to keep pace with rising renewable energy capacity and electricity demand, Bloomberg reports, citing local media. Overall, the company sees some CNY 4tn (~USD 575bn) investment during the period, which is broadly in-line with our forecast

To recap, the State Grid corp. controls ~80% of Chinese electricity transmission capacity and historically 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