Quantcast
Other Stories

As such, we estimate that total grid spending increased by 6-8% in 2013, which would still represent strong growth versus the flat performance in 2012. As the Southern Grid has continuously trimmed investment in past ..

11 Jan 2014

LONDON (Commodity Online): Chinese copper consumption may go up this year as the state grid forecast a 13% increase in spending. The power sector accounts for more than 40% of Chinese copper demand, and outsized spending in 2013 helped tighten the Chinese market for most of the year, said London based Barclays in its recent market analysis. “The new target exceeds our expectations and suggests that copper demand from the power sector could stay as strong, if not stronger, in 2014,” the bank said.

The State Grid Corporation of China, which provides power to 80% of China, has set an ambitious spending target for 2014. Investment could reach CNY381.5bn, a 13% increase year-on-year (y/y). It also confirmed that its actual spending in 2013 jumped 10.5% y/y to CNY338bn, which was higher than its initial target of CNY318bn. At a national level, we think this sharp increase is likely to have been partially offset by lower spending by the smaller Southern Grid, which operates in the more saturated markets in the south. As such, we estimate that total grid spending increased by 6-8% in 2013, which would still represent strong growth versus the flat performance in 2012. As the Southern Grid has continuously trimmed investment in past years, we think total national grid spending may grow around 10% in 2014, the bank said.


YOUR RESPONSE
Click on the image to reload it
Click to reload image
COMMENTS (0)

@2013 COMMODITYONLINE ALL RIGHTS RESERVED