China is increasing its stockpiling of essential minerals, including cobalt, lithium, nickel, and copper. According to multiple sources on the 24th, the Chinese government is considering the purchase of strategic metals through the National Food and Strategic Reserves Administration.
One source noted, “The administration has been inquiring about prices for certain metals and seeking bids, indicating a significant move toward expanding stockpiles.”
This initiative follows an announcement made earlier this month by the National Development and Reform Commission in its annual report to the National People’s Congress.
The commission stated, “We will expedite the strategic materials stockpiling process,” and outlined plans to steadily expand storage facilities for grains, cotton, sugar, meat, fertilizers, and oil reserves.
China’s decision comes amid rising demand for energy transition and escalating geopolitical tensions, which have led to global supply chain uncertainties and volatility in commodity prices.
Historically, China has managed its raw material stockpiles through the National Food and Strategic Reserves Administration, utilizing these reserves for market intervention during crises. When commodity prices surge, the government releases stockpiled materials to stabilize prices, while during downturns, it makes bulk purchases to prepare for supply shortages.
Recently, the global commodities market has experienced significant volatility due to trade tensions between the U.S. and China and policy changes in major mineral-producing countries.
Concerns have arisen about a potential 25% tariff on copper imports, following former President Donald Trump’s directive to investigate copper imports. As a result, global commodity companies are proactively supplying copper to the U.S. ahead of any tariff implementation.
Consequently, copper prices on the London Metal Exchange (LME) surpassed 10,000 per ton on the 20th of this month, hitting their highest level since October of last year. Similarly,copperfuturesontheNewYorkMercantileExchange(COMEX)roseto11,270 per ton.
Meanwhile, the Democratic Republic of the Congo, the world’s largest producer of cobalt, has temporarily halted cobalt exports, leading to a surge in prices. The Congolese government announced, “We will implement a cobalt export quota system and collaborate with Indonesia to regulate supply.”
This situation underscores the increasing uncertainties in the global resource market, foreshadowing rising prices for key minerals and the complexities of supply chains.
