While there were serious increases in commodity prices with the increasing demand and weak supply after the pandemic, China started the sales in its previously announced commodity reserves.
At the first stage, on July 5-6, China will realize 100 thousand tons of metal through direct sales to the market. Accordingly, the country will sell 20 thousand tons of copper, 50 thousand tons of aluminum and 30 thousand zinc in the market.
On the refined copper side of the country, 866 thousand tons of production was realized in May, while the copper reserve to be released to the market is 2.3 percent of the monthly production.
On the zinc side, 527 thousand tons of production is made in China, which points to 5.7 percent of the 30 thousand tons of monthly production to be launched at the beginning of July.
Finally, 50 thousand tons of product to be driven on the aluminum front is only 1.5 percent of the previous month’s production of 3.31 million tons.
Sales of copper and zinc will be provided online by the state-owned company China Minmetals, according to Reuters sources.
The aluminum sale will be carried out by another state-run Norinco, using the auction method.
News of reserve sale in China pushes prices down
Consecutive news headlines led to a decline in copper prices from 10 thousand 750 dollars to 9 thousand 200 dollars, aluminum prices from 3 thousand 120 dollars to 2 thousand 900 dollars, and on the zinc side from 3 thousand 82 dollars to 2 thousand 890 dollars.
Despite these retreats, metal prices such as copper, iron ore, aluminum and zinc have increased by 20-50 percent since the beginning of the year.
While most of the increased prices were explained by demand, it was shared by the authorities that speculative movements were effective in the futures markets.