There is speculation that the Chinese government may establish strategic reserves of 10 rare metals, including tin, to stabilize their supply and prices, according to reports in China Daily and Shanghai Securities News this week. China’s State Bureau of Material Reserve operates under the National Development and Reform Commission (NDRC). It is taking charge of formulating strategies for reserves and managing the state purchase of mineral reserves.
The 10 under consideration are rare earths, tungsten, antimony, molybdenum, tin, indium, germanium, gallium, tantalum and zirconium, according to unnamed sources quoted by the latter publication. The move is aimed at achieving a balance between market supply and demand as well as maintaining price stability, the report said. It is the first time the government has considered strategic reserves for most of these metals, although stockpiles of major non-ferrous metals such as copper, aluminium and zinc are already in place. Rare metals, which are regarded as "vitamins for the economy", are essential to China’s development. Construction of reserve systems will help ensure economic security, analysts said.
At the height of the global financial crisis in 2008-2009, the Yunnan provincial government operated a short-term stock financing plan to support the local industry, but the central government has until now not held tin stocks. It is not clear which rare metals might be purchased or what the scale of a possible stockpiling operation might be. ITRI’s view is that the rumoured plans are not likely to be put into action for some time.
