The Chinese government has announced that it will release copper, aluminum and zinc from inventories to increase supply to the market in a new effort to curb the spike in prices that authorities say could disrupt business recovery
BEIJING – The Chinese government on Wednesday said it will release copper, aluminum and zinc from stocks to increase market supply in a new effort to curb the price spike that officials say could disrupt the market. business resumption.
Wednesday’s announcement comes after industrial commodity price inflation hit a 13-year high of 9% year-on-year earlier in May. The decision of the State Bureau of Grain and Material Reserves was reported by state television, which gave no details on when or how much would be released.
Cabinet officials have warned that the spike in prices will hurt small businesses and private companies that have not fully recovered from last year’s slump in activity due to coronavirus checks.
Soaring prices “are creating headwinds for businesses and will likely reduce the profitability of downstream industries and hamper business investment,” Tommy Wu of Oxford Economics said in a report.