On Wednesday, China’s National Food and Strategic Reserves Administration announced that the PRC will begin selling non-ferrous metals from government reserves. The measure is aimed at combating the rise in prices for these metals – the price of some of them reached a maximum in 13 years. The last time China made a decision to sell metals from state reserves was in 2010.
Among other things, China will sell copper, aluminum and zinc from government reserves to companies involved in processing and production. The sale will begin “shortly” and will be carried out through open auctions.
The rise in metal prices, among other things, is associated with the general recovery of the global economy after the recession last year. Thus, the price of copper has risen by 67% over the past 12 months. On Wednesday, copper on the London Metal Exchange fell 4% on expectations of the start of sales of the metal from the Chinese government reserves.