China's five-year plan boosts future demand for non-ferrous metals and steel
The Commonwealth Bank of Australia (CBA) analyst said in a report that “China’s five-year plan contains a lot of clues about commodity demand.”
Recently, the Central Committee of the Communist Party of China and the State Council have issued the "Outline of the National Comprehensive Three-dimensional Transportation Network Planning". The outline has made it clear that by 2035, the total scale of the railway network will reach 200,000 kilometers. Among them, 70,000 kilometers of high-speed railways (including some intercity railways) and 130,000 kilometers of ordinary-speed railways (including some urban railways).
In addition, the "New Energy Vehicle Industry Development Plan (2021-2035)" proposes that by 2025, the sales of new energy vehicles and new vehicles will reach about 20% of the total sales of new vehicles, and by 2035, pure electric vehicles will become the main vehicle for new sales. Mainstream.
CBA stated that “the shift from heavy-duty diesel trucks to electric railways for long-distance freight will help decarbonize the transportation industry.”
The bank said that the increase in railway capacity will require steel made from iron ore and coking coal, while the increase in China's demand for electric vehicles will require a series of battery metals, copper and steel.
Glencore, an international trading company, emphasized its optimistic expectations for China's bulk commodity demand in the coming year and beyond.
The company’s CEO Ivan Glasenberg said last month that as the global electric vehicle revolution unfolds, the company has modeled the demand for battery metals. It is estimated that by 2050, the annual demand for copper and zinc will double, and by the middle of this century, the demand for cobalt and nickel will increase fourfold to meet the growing demand.
