China is considering selling major industrial metals from its reserves to tame rising factory-gate
prices
▪ Factory prices in the country have struck a 13-year high escalating fears of worldwide
inflation.
▪ The move is targeting copper, aluminum and zinc among others and will include public
auctions to the country’s metal processors and manufacturers.
▪ China is trying to use its advantage of being the world’s largest consumer of a number of
industrial products to try and put a stop to extreme worldwide increase in metal prices
▪ Results of Beijing’s metal auction will be realized depending on quantity of metals to be
released or that which it has capacity to release.
Beijing’s large metal buying ability is not an assurance of its capability in curbing worldwide
prices.
CSI 300 is down 1.67%, USDCNY is down 0.12%
Source: Wall Street Journal
