China is set to intensify its efforts to curb the rising costs of raw materials by releasing more metal reserves, the National Food and Strategic Reserves Administration said in a statement.
- The additional increases will be scheduled in the “near future”, in line with efforts to ensure the supply and stability of commodity prices, and the “smooth operation” of the market.
- China on July 5 released the initial batch of national metal reserves equivalent to 100,000 tons through public auction. This includes 50,000 tons of aluminum, 30,000 tons of zinc, and 20,000 tons of copper.
- China’s efforts to unleash its metal reserves come as factory inflation hit a 13-year high in May. Inflation has since cooled with the intensified efforts to curb the rising prices.
Shanghai Metal Exchange Market on Monday recorded bids lower than spot prices — 67,718 yuan a ton for copper; 18,074 yuan a ton for aluminum; and 21,200 yuan for zinc.