Copper, aluminum, and zinc will be released from China’s national strategic reserves for the first time in over a decade, announced the National Food and Strategic Reserves Administration, reported Caixin. The announcement follows price increases and rising demand from global economic recovery from the pandemic.
On Tuesday, the administration said that the public can expect to see 20,000 tons of copper, 30,000 tons of zinc and 50,000 tons of aluminum released from the reserves. The metals will be sold through competitive bidding on electronic bidding platform wuage.com from July 5 to July 6.
The amount of copper that will be sold is equal to 2.4% of China’s average monthly refined copper production in 2020. Aluminum and zinc were equivalent to 1% and 5.6%, respectively, of average monthly production.
This is the first time China has sold copper from the national reserves since 2005 when it released 80,000 tons. The most recent time that aluminum was sold was in 2010 when 220,000 tons were auctioned off.