China Expands Strategic Metal Reserves Amid Rising Demand and Geopolitical Tensions
China is ramping up its strategic reserves of key industrial metals, including cobalt, copper, nickel, and lithium, as part of efforts to bolster supply chain resilience during a period of heightened energy-transition demand and geopolitical uncertainty. The National Food and Strategic Reserves Administration, which oversees the country’s commodity stockpiles, has begun price inquiries and bidding for these metals, according to sources familiar with the matter.
China plans to add cobalt and copper to state metal reserves.
The National Development & Reform Commission (NDRC), China’s top planning body, highlighted the initiative in its annual parliamentary report earlier this month, stating that the country would “move faster to fulfill the yearly task of stockpiling strategic goods.” While details such as timing and volumes remain confidential, the move aligns with Beijing’s broader strategy to secure critical resources for economic stability and industrial growth.
China’s state stockpiler, formerly known as the State Reserve Bureau, has historically influenced global markets through large-scale purchases. Recent actions include replacing older copper inventories with newer ones in rotation and increasing cobalt stocks. These reserves act as a buffer during supply disruptions and price volatility while stabilizing domestic markets. The agency's activities have already impacted market prices; copper on the London Metal Exchange recently surpassed $10,000 per ton for the first time since October.
Copper prices near five-month high as China moves to boost consumption.
Cobalt prices have also surged following China's strategic purchases and an export ban extension by the Democratic Republic of Congo, the world’s largest producer of cobalt. Futures for cobalt in China jumped over 9% on Monday, with prices on China’s Wuxi Stainless Steel Exchange rising by 55% since February.
This expansion of strategic reserves comes amid global trade disruptions triggered by U.S. tariffs and market volatility. President Donald Trump recently ordered an investigation into copper imports, potentially leading to new duties that have further tightened global supplies. Analysts believe China's stockpiling efforts will continue reshaping international trade dynamics while securing its domestic resource needs.
