The People’s Republic of China released another 70 thousand metric tons of aluminium yesterday in yet another effort at bringing down metals prices and increasing supply.
Beijing’s release of metals was the fourth such release this year. Also released on Saturday was 50 thousand metric tons of zinc and 30 thousand metric tons of copper. The sales were conducted online by Norinco and China Minmetals Corp and divided up in lots of between 100 tons and 250 tons.
The National Food and Strategic Reserves Administration conducted the sale and said in a related press release that future sales would occur as needed based upon supply, demand, and metals prices. It did not reveal who the buyers were nor how much they paid for the lots that they bought.
To date, Beijing has released 570 thousand metric tons of metals so far this year. This year’s sales are the first such sales in over a decade.
Chinese producers have been facing capacity cuts recently due to environmental concerns, limiting supply and driving up aluminium prices. Experts foresee even more cuts on the horizon as the country moves into the winter months.