China announced on Wednesday it will release its national base metals reserves in the near term to stabilize commodity prices
. The announcement also said to it would sell its reserves to end users through tenders.
The aluminium front-month price on the Shanghai Futures Exchange
declined to 18,590 yuan ($2,904) per tonne on Wednesday, down by 510 yuan from the previous day’s closing price at 19,100 yuan per tonne.
But market participants largely downplayed the impact of the release of aluminium reserves on prices in the medium term.
“Even if the State Bureau Reserve put all their inventory on...