China to release more metal reserves to ease tight supply

Photo taken on July 29, 2020, shows a workshop of Hongchang Aluminum Industry Co., Ltd. in Wuxing District of Huzhou, east China's Zhejiang Province. (Xinhua/Huang Zongzhi)

BEIJING, Sept. 16 (Xinhua) -- China will closely monitor market conditions, continue to release state metal reserves, overcome mismatches between supply and demand, and guide the prices of the raw materials to return to reasonable levels, the country's top economic planner told a press conference on Thursday.

"Currently, the prices of copper, aluminum and zinc are still high," said Li Hui, an official with the National Development and Reform Commission, adding that enterprises in related industries have pinned high hopes on the authorities to boost supplies and stabilize prices.

By now, China has released 420,000 tonnes of reserved copper, aluminum and zinc in three batches, Li said.

She added that through online public auctions, small and medium-sized manufacturing enterprises have enjoyed benefits by purchasing the raw materials at prices "slightly lower than the market levels."

The release of those metal reserves has stabilized market expectations and, to some extent, mitigated the rising trend of the prices, Li said.