China cools commodity prices

Following a global recovery, China pressed the button to contain the rising commodity prices since 2020 and reduce speculation. After the supply-related problems in the field of raw materials since the beginning of the pandemic, the prices of commodities used in the industrial sector had increased. China's National Food and Strategic Reserves Administration has decided to sell from its national reserves to mitigate threats from industrial raw material costs. Just as meat prices had previously sold pork stocks to cool inflation concerns, it has now repeated the sale for metals.

China, which has released some metals such as copper for the first time since 2005 and aluminum and zinc for the first time since 2010, aims to prevent the risks that may arise from excessive increases in prices and to control inflationary pressures. 20 thousand tons of copper, 50 thousand tons of aluminum and 30 thousand tons of zinc were released by selling to these manufacturers and producers in bulk. Afterwards, oil sales were also carried out. China's use of its reserves somewhat cooled the rally in metal prices. There is no official statement about the country's reserves, but according to the estimates of financial institutions, China is almost the world's commodity warehouse.