Three key factors will keep commodity prices elevated, according to NBS spokesman Fu Linghui.

“First, the world’s economy is recovering and this is [increasing] demand [for commodities]; second, supply of key raw materials from major producing countries is getting tighter due to the negative impact of the Covid-19 [pandemic], among other factors, including rising freight rates; and, third, quantitative easing and fiscal stimulus measures in world’s major economies [will] also keep these prices elevated,” Fu said.

China will continue to take measures to ensure commodity supplies and keep prices stable, Fu said, to support small and micro enterprizes amid rising production costs.

This is in line with the country’s June decision in to sell reserves of key raw materials - including copper, aluminium and zinc - to downstream fabricators as a way of cooling down “unreasonable” price increases in the commodity markets.

China increased the volumes of copper, aluminium and zinc in its second batch with all auctioned material quickly sold out.