China releases metal reserves to curb commodity rallies

Roll of sheet aluminum at a factory in Wuhan, China.


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Singapore — China plans to release its domestic reserves of major industrial metals to curb rising commodity prices driven by the resumption of global economic activity.

China’s National Food Strategy Reserve, a national reserve agency, plans to release copper, aluminum, zinc and other national reserves in batches in the near future to ensure bulk commodity supply and price stability. Said there is.

Speculation that Chinese officials will make such a move pushed copper prices to eight-week lows on Tuesday, and investors may soon launch a wider push for Beijing to mitigate price increases. I am worried.

According to government agencies, reserves will be released to non-ferrous metal processing and manufacturing companies through an open bidding process.

The Beijing move came after Chinese officials in recent weeks repeatedly said that this year’s fierce backlash from industrial metals was overkill. The State Council, the Chinese cabinet, said last month that it would take steps to ensure adequate supply of goods and stable prices, and regulators had previously taken a zero-tolerant approach to market manipulation and metal hoarding. He warned industry representatives.

The London Metal Exchange’s benchmark three-month copper forward contract fell 0.15% on Wednesday to $ 9,555 after a decline of about 4% on Tuesday, reversing the previous rise after China’s announcement.

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China releases metal reserves to curb commodity rallies

Source link China releases metal reserves to curb commodity rallies

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