SMM

February 15, 2025— The State Grid released over 200,000 mt of aluminum wire and cable orders at the beginning of 2025, including 130,000 mt from ultra-high voltage (UHV) projects and 80,000 mt from power transmission and transformation projects, injecting a strong boost into the industry chain. SMM believes that the current order structure is reshaping the industry cycle: the short-cycle, fast delivery of power transmission and transformation projects (production preparation in April, delivery in May-June) and the long-cycle, stable demand of UHV projects (continuous release starting in August) form a momentum relay. Considering that the State Grid's tendering process started 2-3 months earlier than in previous years, a new round of order releases is expected by the end of Q2. Coupled with the implementation of the 650 billion annual investment target, the aluminum wire and cable industry is likely to emerge from the "order gap period" and achieve a systemic rebound in capacity utilisation rate in H2.