China is increasing its strategic reserves of crucial metals such as cobalt, copper, nickel, and lithium to enhance supply resilience amid rising energy-transition demands and geopolitical tensions. This initiative includes expanding storage facilities and diversifying suppliers. Recent trade uncertainties have also contributed to a rise in metal prices, with copper reaching $10,000 per ton.
China has announced plans to enhance its strategic reserves of essential industrial metals, including cobalt, copper, nickel, and lithium. This initiative aims to bolster supply resilience in response to increasing demand from energy transitions and ongoing geopolitical tensions. Bloomberg News reports that the National Food and Strategic Reserves Administration has initiated price inquiries and bids for certain metals, following directives from the National Development & Reform Commission to expedite stockpiling efforts.
While the government has not disclosed specific details regarding the timing or volume of these purchases, it is clear that the endeavor is part of a broader strategy. Furthermore, Beijing is actively expanding storage facilities for crucial commodities such as grain, oil, and fertilizers. This initiative also involves diversifying suppliers to minimize risks associated with trade disruptions, particularly those related to U.S. tariffs.
The backdrop of recent supply shortages and trade uncertainties has led to significant increases in metal prices. For instance, copper has surged to $10,000 per ton in London, while cobalt prices have escalated due to an export ban implemented by the Democratic Republic of Congo.
In summary, China is proactively augmenting its strategic reserves of vital industrial metals, reflecting an urgent response to both growing energy-transition needs and geopolitical dynamics. Enhanced storage facilities and supplier diversification further illustrate the nation’s commitment to mitigating potential trade risks. Recent trends in metal prices underscore the importance of these strategic policies.
Original Source: www.tradingview.com
