China will start selling aluminum, copper, and zinc reserves in a bid to cool inflation, according to the WSJ.
- The National Food and Strategic Reserves Administration said the reserves will be released to domestic processors via public auctions. The releases will be made in batches to ensure supply and price stability.
- The Chinese government does not disclose its metal holdings, but remains the world’s top buyer of several industrial commodities. Chinese export prices recently hit a decade-high in the United States.
- Top officials have continuously moved to tame down inflation, as factory price hikes hit 13-year highs. The government last month said it would take the necessary steps to ensure stability.
The market is awaiting further steps to be taken by China, including a possible policy adjustment.