Relentless China Seeks More Metal Sales to Tame Material Prices

Source: Bloomberg

China will sell more metal stockpiles in the near term to curb the rising costs of raw materials and maintain market stability.

CSI 300 is up +1.13%, USDCNY is down -0.30%.

• In its first sale, China released metal stockpiles that included 50,000 tons of aluminum, 30,000 tons of zinc, and 20,000 tons of copper.
• The released metal stockpiles were sold below spot market prices, with a ton of copper selling at 67,718 yuan, aluminum at 18,074 yuan per ton, and zinc at 21,200 a ton at Monday’s auction.
• The surge in base metals has stalled since China began crackdown amid peaking economic growth and 13-year high inflation reached in May.