China Mulls Selling Aluminum From State Reserves to Cool Prices
- Plan could involve the release of 500,000 tons of the metal
- Beijing is seeking to meet carbon goals and prevent inflation
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China is considering selling about 500,000 metric tons of aluminum from state reserves, according to a person with knowledge of the plan, in a move that would help cool the market and meet the Asian nation’s emissions objectives.
Aluminum prices plunged, hitting a daily decline limit in Shanghai, as traders sold futures contracts on earlier speculation of China’s plans. Releasing stockpiles of the highly carbon-intensive metal could offset production losses caused by China’s commitment to limiting energy usage as it plots its course to a carbon-neutral economy by 2060.