The world's biggest copper consumer could be getting ready to start spending, analysts told Fastmarkets.
Analysts expect China's State Grid Corp of China, whose budget comprises 50% of the country's annual copper demand, to come good on promises to increase investment on the nation's electronic grid by 5% this year. That amounts to 14 billion yuan ($2 billion) of extra spending, according to estimates which forecast a total investment of 524 billion yuan on expanding China's electronics infrastructure. So far this year, Chinese state grid spending has underperformed by 19% against 2018 levels, adding to generally weak copper usage, mainly in wires and cables. But analysts expect the spending to be back-loaded to the second half of the year, bringing with it a surge in consumption for the red metal. "It's potentially a big plus for copper demand in China, which should affect copper prices positively in the coming months," Fastmarkets senior...