The China Nonferrous Metals Association has proposed that the government increase state copper reserves. This decision is being discussed against the backdrop of similar steps by the United States and a record rise in prices for metal.
An industry association in China has launched an initiative to expand the country’s strategic copper reserves. At its annual briefing, association officials said the government should boost government reserves and work with major producers to increase commercial stocks.
Experts are also considering the possibility of including copper concentrate in the list of strategic reserves. The proposal comes a day after the US administration announced the creation of a $12 billion fund to build reserves. critical minerals and reducing dependence on Chinese supplies.
China, analysts believe, has been accumulating strategic reserves of copper for decades to protect against supply disruptions. The metal is key to infrastructure, electronics and renewable energy.
Copper prices hit record levels last year amid mine disruptions and high demand. Despite the recent correction, the price of the metal continues to grow by about 40% in annual terms.
The call for more copper reserves reflects growing geopolitical tensions over securing the critical raw material. China is strengthening its resource security in response to similar actions by other major economies.
Source: MINING.COM
Image: Reuters
