Menu

  • China Will Release Reserves of Copper Aluminium and Zinc In Near Term

Added at 12:10am

Added at 12:17am

  • China to release national reserves of copper, aluminium and zinc

    From reuters.com

    China will release national reserves of copper, aluminium and zinc in batches in near term in response to the government’s requirement of stabilising commodity prices, the National Food and Strategic Reserves Administration said on Wednesday. The reserves will be released to nonferrous processing and manufacturing firms via public bidding, the administration said in a statement. (Reporting by Min Zhang and Dominique Patton; Editing by Muralikumar Anantharaman)

  • #1
  • Quote
  • Jun 16, 2021 12:50am Jun 16, 2021 12:50am
Commodity currencies down.
Start with 1000$. Increase by 3% every day. After one year 2 213 314$
  • #2
  • Quote
  • Jun 16, 2021 2:21am Jun 16, 2021 2:21am
  •  Trader#7241
  • | Status: Unregistered Trader
Quoting NotAtrader
Commodity currencies down.
Aussie Dollar especially
  • #3
  • Quote
  • Jun 16, 2021 3:51am Jun 16, 2021 3:51am
Quoting NotAtrader
Commodity currencies down.
The draw from reserves needs to be filled again to keep reserves steady.
  • #4
  • Quote
  • Jun 16, 2021 4:08am Jun 16, 2021 4:08am
Quoting Bakker
{quote} The draw from reserves needs to be filled again to keep reserves steady.
They will not empty the reserves. They are talking about releasing of reserves in order to stabilize commodity prices.
Start with 1000$. Increase by 3% every day. After one year 2 213 314$
  • #5
  • Quote
  • Jun 16, 2021 4:31am Jun 16, 2021 4:31am
Quoting NotAtrader
{quote} They will not empty the reserves. They are talking about releasing of reserves in order to stabilize commodity prices.
I didn't say they're going to EMPTY the reserves. Brrrrrr!!
  • #6
  • Quote
  • Jun 16, 2021 4:42am Jun 16, 2021 4:42am
Quoting Bakker
{quote} I didn't say they're going to EMPTY the reserves. Brrrrrr!!
Ok brrrrrr. What you said is obvious but irrelevant. First of all it is not taken for granted that the reserves are going to be refilled anytime soon, as this might be a permanent adjusting to the reserve levels. For the second, if that happens, the commodity currencies will go up, but that is not the message this article gives to the market. Hence irrelevant comment brrrrrr.
For now the commodity prices will go down and so will the commodity currencies provided China will turn words into actions.
Start with 1000$. Increase by 3% every day. After one year 2 213 314$
  • #7
  • Quote
  • Jun 16, 2021 6:29am Jun 16, 2021 6:29am
This is curious. With exception of copper, China is a producer country (in Aluminium, zinc). Why would they want to see downward cost pressure, unless it is ultimately to increase demand in the long term.
As we know gold prices have been kept back, possibly by China? China has "recently" been a large producer of gold and now prices are on the way up (also very large importer). Common thread here!
I suspect they are stealthily stock piling for future gain.
For a communist country it beats the western world at its own game hands down.
  • #8
  • Quote
  • Jun 16, 2021 7:35am Jun 16, 2021 7:35am
Quoting PaulVic
This is curious. With exception of copper, China is a producer country (in Aluminium, zinc). Why would they want to see downward cost pressure, unless it is ultimately to increase demand in the long term. As we know gold prices have been kept back, possibly by China? China has "recently" been a large producer of gold and now prices are on the way up (also very large importer). Common thread here! I suspect they are stealthily stock piling for future gain. For a communist country it beats the western world at its own game hands down.
because inflation is running hot there and they think its because of commodities. they wanna curb it before they get runaway inflation.
  • #9
  • Quote
  • Jun 16, 2021 8:11am Jun 16, 2021 8:11am
Quoting jordanvic
{quote} because inflation is running hot there and they think its because of commodities. they wanna curb it before they get runaway inflation.
Exactly - hard to build houses with copper plumbing for all those folks at these prices
...because you never know - until you do!
  • #10
  • Quote
  • Jun 16, 2021 9:13am Jun 16, 2021 9:13am
  •  Trader#23D3
  • | Status: Unregistered Trader
This game is played in the oil market all the time. If a soverign tries to manipulate price too often the strategy becomes less effective. The US ocassionally sells off the strategic petroleum reserve (SPR) when it wants to influence prices lower. It used to work. Markets don,t really pay attention as much as they used to.
  • New Comment
  •  Trader#7A04
  • | Status: Unregistered Trader
Create Account
  • Story Stats
  • Posted: Jun 16, 2021 12:09am
  • Submitted by:
     Newsstand
    Category: High Impact Breaking News
    Comments: 10  /  Views: 4,360