China says to release more metals in the market to lower prices

China said on Thursday it will continue to release national reserves of copper, aluminium and zinc in its effort to boost market supply and ease the rising commodity prices. 

Li Hui, deputy director of the Department of National Economy of the National Development and Reform Commission (NDRC), said the commission will closely monitor changes in the market and release more national reserves to relieve the contradiction between supply and demand of metals and guide the commodity prices to return to a normal range, China Daily reported.

On Sept 1, the NDRC and the National Food and Strategic Reserves Administration released 150,000 tons of copper, aluminium and zinc from the national reserves, the third batch of releases to the market.

So far, China Daily said, China has released three batches of copper, aluminium, and zinc this year, totalling 420,000 tons.

Li said the release helps boost the market supply and ease the pressure on raw material costs for enterprises, showing the country’s strong determination to stabilize the supply and prices of the key commodities, the newspaper website reported

“The majority of small and medium-sized processing and manufacturing enterprise have fully participated in the online bidding of (copper, aluminum and zinc), and they are able to purchase raw materials at below-market rates,” it quoted Li as saying.

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