1 Nov 2010 09:41

China to establish nonferrous metals storage system

Shanghai. November 1. INTERFAX-CHINA - The Chinese central government plans to introduce a formal and comprehensive system for the storage of nonferrous metals but has yet to finalize a timetable, domestic media reported Oct. 29.

According to a Caijing.com.cn report, the director of the department of metallurgy at the National Development and Reform Commission (NDRC), Tang Yan, said the system will help balance market supply and demand for metals including aluminum, copper, lead, zinc and rare earths.

The central government still needs to conduct market research to ensure the success of such a system, Tang said, adding that it may also consider something similar in the future for steel products.

In order to protect the country against the impact of the global economic downturn and to support aluminum prices, in both December 2008 and February 2009 the Chinese central government purchased 590,000 tons of aluminum from major domestic aluminum smelters.

An Oct. 22 announcement on the NDRC's Web site stated it will open the sale of a total of 96,000 tons of aluminum ingots to public bidding on November 1 and November 2.