Railway Investment Scale Upgraded to Directly Benefit Copper Wires &Cables and Alloys

The infrastructure investment scale of the Ministry of Railways for 2012 has been upgraded from the 406 billion yuan at the beginning of the year to 516 billion yuan. The constant upgrading of investment scale means railway construction investment will be increased in the second half of the year, its fueling impact on economy will appear in the first half of 2013.

Between 2013 and 2014, high speed rail will meet a completion peak period, the demand for equipment will also enter a peak period. According to the requirement for newly built passenger transport railway lines, construction mileage of high speed rail is 15000 km during the“Twelfth Five Year” period, in the next three years the annual completion mileage of high speed rail alone will top 3000km. The upgrad-ing of railway fixed asset investment amount will increase actual market demand for copper.Taking into account the annual completion mileage, each year the demand for copper wire alone will increase by 6000 tonnes. Electromechanical engineering needed by electric railway, such as electric motor, rectifier, control system, electrical system and signal system,will consume huge quantity of copper conductor, which will increase market demand for copper and copper alloy.