China to release copper, aluminum, zinc reserves to curb soaring prices
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Update time : 2021-06-21 21:58:25
According to reports, China announced last Wednesday that it would release industrial metals from the national reserves to cut down commodity prices. The analysts said it could be the first move in a decade by the world’s largest consumer of metals.
The National Food and Strategic Reserves Administration said it would release copper, aluminum, and zinc in batches for nonferrous processing and manufacturing companies soon by public auction.
The Chinese authorities tried to cool down the rising metal prices this year on post-pandemic economic recovery, huge global liquidity, and speculative buying which hurt manufacturers’ profit. China is facing the fastest annual pace for commodity price rise in 12 years.
However, the analyst saw this move could only cut down commodity price rise by changing market expectations and stopping the speculators but could not resolve the shortage of the material.
