China may import copper for power grid modernisation

[phantom power]

HAMBURG, Jan 19 (Reuters) - China's plan to modernise its electricity transmission network may stimulate more copper imports and raise Chinese copper prices, Aurubis (NAFG.DE), Europe's biggest copper smelter, said on Wednesday.

China announced a series of targets for its power sector on Jan. 6 including modernisation of the rural power grid. Power cables have a high copper content.

The grid modernisation "will result in additional copper demand," Aurubis said. "Since a significant portion of Chinese copper consumption must have resulted from the depletion of local stocks in light of consistent imports of wrought copper and copper products in 2010, this might cause imports to rise in 2011," Aurubis said.

"The rebuilding of stocks outside of the metal exchange could result in the copper prices in China increasing above the level of the LME (London Metal Exchange) again, and thus reopen the arbitrage window -- a situation that benefits copper imports."

http://www.reuters.com/article/idUSLDE70I1IQ20110119?rpc=401&feedType=RSS&feedName=rbssIndustryMaterialsUtilitiesNews&rpc=401

[Xenotime]

1. China's ability to grow and dominate will be very interesting.

[somone]

2. Keep an eye on your air conditioner

[Ghost Dog]

3. I'd like to know how much intelligence is to be built into Chinese grids,

and to what degree individual rural households and collectives will be able to input electricity generated from from local renewable and recycled sources.

I'm sure the relevant committees know that distributed-generation/intelligent-consumption grids are the way to go.

Edit to add: