According to the Chinese hair leather committee, China will guide companies use their own funds to build up reserves of nonferrous metals, the move aims to establish a kind of help regulate supply and demand, price stability mechanism.
According to the guidance released Thursday by the state council, the national development and reform commission reply related issues, said the government will guide the business capital, financial capital, social capital reserves in non-ferrous metal prices lower.
China is the world's largest commodity consumer, in order to help the shift from capital-intensive to consumption-led economy, the government is fully promote the reform of the supply side, and set up excess metal reserves, digestion and domestic raw materials, it is also one of supply side reform measures. The guidance of the state council also include measures to cope with excess capacity, encourage mergers and reorganization, overseas investment and refining metal exports, and to give domestic miners tax breaks.
As the world economy, especially the Chinese economy, growth difficult, industrial commodity prices since 2011. At the end of 2015 metal prices fell to a low for many years, has prompted the Chinese smelters to cut production.
Development and reform commission (NDRC) said the commercial reserves is spontaneous behavior, reserve varieties determined by reserves of main body, to value and profit for the purpose of enterprises to raise funds in accordance with the market-oriented operation. China's existing mechanism is held by SRB metal reserves.
Development and reform commission (NDRC) said in the mail, China has been guiding supply side structural reform, accelerate the aluminum industry has obtained certain achievements; With backward production capacity was eliminated, the problem of excess supply, capacity utilization rate climbed to 80% last year.