OREANDA-NEWS. January 30, 2015. Record investment in China’s state power grid is set to boost copper consumption in the power sector this year by around 9 percent, a state-backed research firm said, a positive piece of news for a metal languishing near 5-1/2 year lows.

The forecast by research firm Antaike comes after state media reported on Friday that the power grid plans to invest 420 billion yuan (USD67.6 billion) in 2015, up 24 percent from last year.

The power sector accounted for nearly half of an estimated 8.7 million tonnes of refined copper consumption last year in the world’s top consumer and producer of the metal.

“It definitely matters for your outlook on (copper) demand growth, given they are the largest consumer,” said Citi analyst Ivan Szpakowski.

Analysts are divided over whether China’s grid completed all its planned 14 percent spending increase last year, given graft investigations hindered payments to grid suppliers.

Grid investment this year should push copper consumption in the power sector up 8.7 percent to 4.62 million tonnes, picking up from 7.6 percent growth in 2014, said Yang Changhua, a senior analyst at Antaike.

While Antaike had anticipated strong growth in demand from the power sector, where copper is used in transmission cables and transformers, Yang said the plan beat expectations.

It could also help ease worries over China’s copper demand this year, which has weighed on prices, traders said.

Copper traded on the London Metal Exchange edged off last week’s lows after the grid plan was revealed on Friday, hitting USD5,762.5 a tonne.

The investment should also lift demand for aluminium used in overhead power cables and zinc used to galvanize power pylons, Yang said.