In our view, the rapid expansion of the power grid complex and the creation of a new energy sector in China (60% of global consumption), coupled with the country's limited aluminum production, remain among the key factors strengthening aluminum market fundamentals in the medium term.
China's copper production in September increased by 11% YoY to 2.2 million tons, compared with 15% YoY in August. We reiterate our view that growing investment in China's power grid, robust demand trends globally and the monetary easing cycle in key economies (US/EU and China) are likely to provide further support to red metal prices (which we expect to reach 12,000/t in the coming quarters). China accounts for 55% of global copper demand.
