The commodities ‘super-cycle’ suffered a setback yesterday as China moved to slow down a metals price rally.
China plans to release some of its stockpiles of copper, aluminium and zinc to stabilise the surging market in raw materials, reports say.
It has also urged domestic firms to curb commodity trading on overseas markets.
The commodities super-cycle has been in full swing since the start of the year as the global economy started recovering from the pandemic
It would be the first time in around a decade that China, the world’s largest metals consumer, had released reserves.
The commodities super-cycle is in full swing as the global economy recovers from the pandemic and governments plough money into infrastructure.
This and widespread promises to also spend big on green technologies, which require metals such as copper and lithium, have sent prices soaring and in some cases to record highs.
China’s caution comes from a fear that if the rally continues apace, higher prices will be passed on to consumers, which could threaten the country’s post-Covid revival. Zinc, tin and aluminium all dropped.
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