China's average annual copper demand growth in the 13th Five Year Plan period (2016-20) is forecast at 2-2.5%, due to consumption support by the domestic power and new energy vehicle (NEV) sectors, Shanghai Shipping Freight Exchange Co said on its website Monday.
NEV is a motor vehicle powered by a battery that can be recharged from an external source of power.
The exchange report said the construction of power networks as well as intelligent power networks is expected to bring a total copper demand estimated at 262,000 mt in the 2016-20 period, while the NEV sector is forecast to use a total of 149,000 mt copper in the 2016-20 period.
The 149,000 mt of copper demand from the NEV sector is based on estimated use of around 21,500 mt copper by the NEV industry in 2016, and an average annual demand of 31,900 mt in 2017-20, according to the report.
The report said China's wind power installed capacity estimated at 40 million kWh for 2016 implied an addition of 170 million kWh new wind power installed capacity in the 2016-20 period.
Based on each wind power station having 85,000 wind turbines of 2 MW, with each turbine consuming on average 1,000 km of cables, there would be a need for a total of 85,000 km cables, which indicates copper demand of around 30,000 mt in the 2016-20 period.
This, plus around 170,000 mt copper to be consumed by the domestic dynamo rotor sector, will mean roughly 200,000 mt copper demand by the wind power sector in the 2016-20 period, the report said.
