China boosts strategic reserves of cobalt and copper

China will increase its reserves of important industrial metals this year. This move aims to strengthen the country's supply of critical minerals amid rising demand for energy transition and ongoing geopolitical issues. The metals China plans to stockpile include cobalt, copper, nickel, and lithium. These purchases are being managed by the National Food and Strategic Reserves Administration. Reports say the administration has made inquiries about pricing and is considering bids for these metals. The National Development and Reform Commission (NDRC) indicated this plan in its recent report to China's annual parliament, emphasizing the need to expedite stockpiling efforts. The NDRC oversees the country's stockpiles, which range from crude oil to various metals. Its purchasing power can significantly affect market prices. In recent years, China has increased its stocks of cobalt and rotated its copper inventories. The government intends to use these reserves to meet demand during shortages and to help stabilize prices. Stockpiling plans are often disclosed, but specific details about timing and amounts tend to remain confidential. The NDRC also plans to develop more storage facilities for commodities like grain and meat, improving reserve management and efficiency. China has been diversifying its sources for commodities to reduce risks. However, recent U.S. tariffs under former President Donald Trump have created trade uncertainties and market volatility, pushing some metal prices higher. Copper prices have surged, crossing $10,000 per ton. Meanwhile, cobalt prices are rising again after a moratorium on exports from the Democratic Republic of Congo, the largest producer of cobalt.