China Expands Strategic Stockpiling of Key Minerals Including Cobalt, Copper, and Nickel

On the 20th (local time), Bloomberg reported that China plans to expand its stockpiles of key minerals such as cobalt and copper to enhance its supply response capabilities.

Copper smelter in Yantai, Shandong Province, China. Photo by Reuters and Yonhap News.

Bloomberg cited anonymous sources reporting that China's National Grain and Material Reserve Administration is planning to purchase cobalt, copper, nickel, lithium, and other metals, and has recently inquired about prices and attempted bids on some metals.

Bloomberg also reported that the National Grain and Material Reserve Administration has been increasing its metal inventories, including cobalt, over the past few years and has replaced old copper stockpiles with new ones.

The National Grain and Material Reserve Administration is an agency that manages the official national reserves of food and raw materials, ranging from crude oil to pork and copper. If their purchasing scale increases, it could impact market prices.

In this regard, the National Development and Reform Commission (NDRC) of China mentioned in its annual report submitted to the National People's Congress during the Two Sessions (Lianghui: the National People's Congress and the Chinese People's Political Consultative Conference) earlier this month that it would accelerate efforts to stockpile strategic materials.

China increases its strategic reserves to balance supply and demand or stabilize prices during crises. Chinese authorities sometimes disclose stockpiling plans, but details such as purchase timing and quantities are generally not made public.

Among the metals China is considering for strategic stockpile expansion, copper and cobalt have recently shown high price volatility. Copper surpassed $10,000 per ton on the day, influenced by demand to secure supplies before tariffs were imposed after U.S. President Donald Trump hinted at possible tariff implementation.

In the case of cobalt, a battery material, prices surged recently after the Democratic Republic of the Congo, the largest producer, halted exports for four months to raise prices that had fallen due to oversupply.