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Oct 26, 2024

Copper Whale Fuels Speculation of Major China Shift as State Grid Buys Aluminum - Bloomberg

In China, copper is legally required for certain types of wiring or power generation usage, so traders are on high alert for any sign of a policy shift. For months, as copper spiked to record levels

In China, copper is legally required for certain types of wiring or power generation usage, so traders are on high alert for any sign of a policy shift.

For months, as copper spiked to record levels and then fell back down again, one key question has bubbled up across the metals industry: What is China’s state grid operator up to?

The world’s single biggest buyer of copper, State Grid Corp. of China, has slowed its purchases of copper wire this year, while at the same time ramping up purchases of aluminum wire, a cheaper substitute. While arguably a natural response to soaring copper prices, the change has ignited a debate over whether there’s something bigger going on — if one of the metals industry’s most important but opaque buyers might be undergoing a shift in policy that could rock the global market.