Yunnan supports commercial stockpiling of non-ferrous metals to prop up market

SHANGHAI, Apr 26 (SMM) – The government of Southwest China’s Yunnan province has rolled out plans to promote major companies’ commercial stockpiling of key non-ferrous metals, including copper, aluminium, lead, zinc, tin, germanium and indium, as part of the effort to support the metals market impacted by the coronavirus pandemic and to boost the development of the real economy. 

According to a statement by Yunnan government on April 24, companies will stockpile a total amount of non-ferrous metals by 800,000 mt, with a purchase and storage period of one year. 

The government will also provide financial support for companies to carry out the stockpiling, by setting up a special fund of 1 billion yuan to subsidised interest rates on the company loans. 

Companies that stockpile tin, germanium and indium will receive an interest rate subsidy by 80% and companies purchasing copper, primary aluminium, lead and zinc will be subsidised based on 60% of the interest rate on loans.  

SMM learned that some companies in Yunnan have received the notice and are awaiting for further details regarding the implementation of the measures. 

The stockpiling activity is set to reduce metal supply pressure in some markets, like tin, indium and germanium, and take the pressure off producers who faced decreased sales due to the coronavirus impact. Large-scale companies will most benefit from preferential interest rates during the stockpiling.