• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 7 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 5 days Energy Armageddon
  • 3 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 15 hours "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 21 hours "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 18 hours "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 22 hours The Federal Reserve and Money...Aspects which are not widely known
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 days Сryptocurrency predictions
  • 2 days Goldman Betting on Cryptocurrencies
  • 10 days Putin and Xi Bet on the Global South

China’s Renewable Energy Buildout Will Boost Copper Demand

Amid warnings from experts that the copper market should brace up for a supply squeeze, China’s demand for the metal is set for growth despite a slump in housing construction.

According to data from CRU Group, the growth will come from EVs and renewable energy installations, Bloomberg reports. The total demand rise won’t be a huge one, at 0.8 percent for this year, to 15.55 million tons, but growth from the auto and energy sector—specifically transmission—will be a more sizeable 4 percent, the data showed. At the same time, demand from the construction industry will shed 4 percent.

Last month, analysts from ANZ forecast that China’s copper demand could benefit from the country’s power shortages by prompting the authorities to accelerate grid update and expansion projects.

The continuing buildout of wind and solar installations will claim a large chunk of the higher copper demand, too.

"China's push for installing infrastructure to deliver 1,200 gigawatt of renewable energy capacity by 2025 would require an additional 3 million tonnes of copper, which would see annual copper demand from solar and wind increase by nearly 1 million tonnes," the ANZ analysts said in August.

Meanwhile, Europe has emerged as the main driver for copper prices, replacing China. Because of the decline in copper demand in Europe resulting from a recession in the manufacturing sector, prices for the metal have fallen and are likely to remain depressed, Reuters reported earlier this month.

According to analysts, the manufacturing downturn in Europe is and will continue be so bad that even China will not be able to make up for it with its healthier demand for the basic metal.

"The economic outlook ex-China has worsened, particularly in Europe due to the ongoing energy crisis," Marcus Garvey, analyst at Macquarie, told Reuters. "We do not think China will be able to offset the slowdown elsewhere. Inventories will build next year, but how much will be visible is difficult to say."

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News