China industry body urges state to buy metals

SHANGHAI, Jan 8 - China's state reserves should buy copper, zinc and nickel, to help metals producers hit hard by the economic slowdown, the China Nonferrous Metals Association has proposed to the central government, state media said on Thursday.

The association suggested the state reserves should buy 400,000 tonnes of copper, 400,000 tonnes of zinc and 20,000 tonnes of nickel, the Shanghai Securities News reported.

The association, however, warned that state reserves' purchases would not solve all problems for the producers, although it is the most direct support the government could lend.

The Ministry of Commerce will resume a tax-free policy on imports of concentrate for copper, nickel, and on exports of refined copper, nickel and aluminium profiles, from Feb. 1.

Feng Juncong, an analyst with the state-owned think tank Antaike, said 600,000-700,000 tonnes of zinc purchase would yield obvious benefit, as zinc smelters have been suffering huge losses, the paper said.

China's state reserves have so far agreed to buy 290,000 tonnes of aluminium.

For a factbox on China's strategic commodity purchases, click on [ID:nPEK7636].