China to release copper, aluminium and zinc to tame soaring commodity prices
- China last sold copper from its stockpiles in 2005 and released aluminium and zinc in 2010 to stabilise prices
- Beijing has become increasingly concerned about high commodity prices that could be passed on to small businesses
China’s top economic planning agency said on Thursday it would release state reserves of non-ferrous metals at “appropriate” times to curb runaway prices, while flagging there was no sign of a slowdown in steel demand in the future.
The announcement came on the heels of a similar statement from China’s National Food and Strategic Reserves Administration, which pledged on Wednesday to release supplies of copper, aluminium and zinc to non-ferrous downstream processing and manufacturing firms through public bidding, although it did not confirm exact amounts.
China last sold copper from its stockpiles in 2005 and released aluminium and zinc in 2010 to stabilise the prices.
On Wednesday, copper prices fell after being at record levels for months amid China’s strong post-pandemic industrial recovery.
“In recent months, the prices of some bulk commodities have increased significantly, and the surge has clearly deviated from the fundamentals of supply and demand, and has exceeded the reasonable range of recovery,” Meng Wei, a spokeswoman for the National Development and Reform Commission (NDRC), said on Thursday.
