China aims to expand its strategic metal reserves, including cobalt, copper, nickel, and lithium, to enhance supply resilience due to increasing energy-transition demand and geopolitical tensions. The National Food and Strategic Reserves Administration has begun price inquiries for these metals and plans broader stockpiling efforts. Recent supply chain issues have caused significant price rises in metals, signaling the importance of this initiative.
China is set to expand its strategic reserves of essential industrial metals such as cobalt, copper, nickel, and lithium. This initiative aims to enhance supply resilience in response to increasing demand for these metals amid the energy transition and rising geopolitical tensions.
The National Food and Strategic Reserves Administration has initiated price inquiries and made bids for certain metals. This follows guidance from the National Development & Reform Commission (NDRC) aiming to accelerate stockpiling efforts, as reported by Bloomberg News.
The Chinese government has not disclosed specific details regarding the timing and scale of these purchases. Besides metals, Beijing is also expanding storage for vital commodities, including grain, oil, and fertilizers, to ensure supply stability and diversify its supplier base to mitigate risks from potential trade disruptions, particularly those arising from U.S. tariffs.
Recent disruptions in supply chains and trade uncertainties have resulted in higher metal prices, with copper prices in London reaching $10,000 per ton. Additionally, cobalt prices have surged following an export ban from the Democratic Republic of Congo, highlighting the volatility in metals markets.
China’s initiative to expand its strategic metal reserves reflects a proactive strategy to ensure supply stability amid rising demand and geopolitical challenges. The government’s actions, including diversifying suppliers and expanding storage capacity for essential commodities, indicate a comprehensive approach to mitigate risks in the global market. Recent price hikes in metals underscore the urgent need for such measures.
Original Source: www.tradingview.com
