China plans to increase its reserves of key industrial metals this year to bolster the supply of critical minerals, addressing the growing demand for energy transition and the challenges posed by intensifying geopolitical tensions.
According to informed sources, the Chinese government intends to purchase metals such as cobalt, copper, nickel, and lithium. The National Development and Reform Commission (NDRC), China’s top economic planning body, hinted at this plan in its annual report at the National People’s Congress earlier this month, stating that China would “accelerate the completion of annual strategic material reserve tasks.”
In recent years, the NDRC has been increasing its stockpiles of metals, including cobalt, and rotating older copper inventories. This move by China is primarily aimed at ensuring demand can be met at critical times.
Diversifying commodity suppliers can minimize risks. However, due to the global trade turmoil triggered by U.S. President Donald Trump’s tariffs and the resulting market volatility, prices of some metals have been driven up.
On Thursday, March 20, London Metal Exchange (LME) copper prices surpassed $10,000 per ton, the highest since last October. So far this year, U.S. Comex copper futures have risen more than 25%, while LME prices have increased by about 13%. Last month, Trump ordered the U.S. Department of Commerce to investigate copper imports, possibly anticipating the imposition of tariffs. Since then, copper prices have soared, with traders rushing to ship the metal to the U.S., thereby reducing the supply of metal to the rest of the world.
Cobalt, a battery material, has seen its price plummet in recent years due to rising global production. However, following an export ban in the Democratic Republic of Congo, the world’s largest producer, cobalt prices have also surged this month.
Analysts believe that the global copper trade landscape is being reshaped, all stemming from the potential tariff policies of the Trump administration. This chaotic situation is supporting copper price increases in the short term.
