China To Increase Commodity Reserves Of Aluminium, Various Other Raw Materials

China To Increase Commodity Reserves Of Aluminium, Various Other Raw Materials

The Chinese government said this weekend that it is strengthening the management of its state commodity reserves as it keeps an eye on prices of aluminium and other such metals and raw materials.

Beijing said the move is an effort at protecting the country’s supply chain. A report to the National People’s Congress by the National Development and Reform Commission (NDRC) said it will shore up the supply chain by coming up with an early-warning monitoring system and speed up the construction of commodities reserves.

“Demand is weak and supply is constrained, while commodity prices such as energy and minerals remain high, pressuring companies’ key production and operation indicators.”

The NDRC went on to assure the People’s Congress that it would continue to work to stabilizing prices and supplies for raw materials. Among its tactics are helping upstream suppliers keep stable supplies and increase partnerships between producers and sellers.

Last year aluminium was among the commodities released by the central government to stabilize prices in the Middle Kingdom. Among the others were copper, zinc, and petroleum. Beijing also doubled down on monitoring prices for raw materials and deterring speculators.