International copper prices have been rising since May this year. Although they have been significantly corrected recently, the outlook is still optimistic. Copper has always been the preferred metal for conductivity. Aluminum has poor conductivity but is lighter and cheaper and has long been used as a substitute metal.

The International Copper Association reported that in the past decade, global substitutes have reduced copper consumption by about 1% to 1.5% each year. China State Grid Corporation, the world's largest copper buyer, has slowed down its purchases of copper wire this year while increasing its purchases of aluminum wire, a cheaper alternative.

China is the world's largest copper consumer, using over a quarter of global copper supplies for its cables. The potential large-scale replacement of copper in China's power grid could significantly impact global demand.