Metals News

RPT-FACTBOX-China's strategic commodity purchases

(Repeats to widen distribution)

BEIJING, Jan 6 (Reuters) - Following is a list of commodity purchases planned by China’s state and commercial reserves.

The list includes purchases and planned purchases by the State Reserves Bureau and by Yunnan Province, which has launched its own drive to buy up metals.

The SRB is buying directly to replenish state reserves that typically are stored for an unknown length of time.

Yunnan has invited local companies to arrange bank loans, mortgaged on their metals stockpiles, to fund the one-year stock-building plan. The province has offered to subsidise their interest payments and storing costs.


Volume - The SRB has bought 30 tonnes so far. Smelter sources expect further purchases in the future.

Sellers - A large Chinese smelter, according to a trade source.

Status - 30 tonnes bought in Dec, according to one smelter source.


Volume - The SRB has agreed to buy 290,000 tonnes. Several sources have said it could buy up to one million tonnes within months. Yunnan could store up to 300,000 tonnes until the end of 2009.

Sellers - For national reserves, 150,000 tonnes from Chalco 2600.HK601600.SSACH.N, and 20,000 from each of seven other state-controlled smelters, named by one industry source as Shanxi Guanlu 000831.SZ, Yunnan Aluminium, Henan Shenhuo, Qingtongxia, Huolinhe, Henan Wanji and Qinghai Qiaotou.

For Yunnan reserves, Yunnan Aluminium 000807.SZ plans to put out 160,000 tonnes.

Status - 290,000 tonnes bought for national reserves in December. Yunnan to start purchases for provincial reserves.


Volume - Up to 100,000 tonnes by Yunnan province.

Sellers - Yunnan Tin 000960.SZ.

Status - Yunnan Tin proposed to sell the province 30,000 tonnes of tin ingots last week.


Volume - For SRB, not decided yet. One smelter source said in December it could buy at least 700,000 tonnes. Up to 150,000 tonnes by Yunnan.

Sellers - Possible 400,000 tonnes from Jiangxi Copper 600362.SS, according to the smelter source, though Jiangxi Copper's spokesman said the firm had not received the request. Yunnan to buy from Yunnan Copper 000878.SZ.

Status - Yunnan Copper has proposed to sell 2,000 tonnes of refined copper to province.


Volume - Up to 150,000 tonnes by Yunnan.

Sellers - Yunnan Chihong Zinc 600497.SS.

Status - Chihong has not decided whether it would participate or the amount it wants to sell.


Volume - SRB expected to buy 300,000 tonnes, an official at one zinc smelter said in December. Yunnan could also buy up to 300,000 tonnes.

Sellers - Yunnan to buy from Yunnan Luping Zinc 002114.SZ and Yunnan Chihong Zinc 600497.SS.

Status - Negotiations started on sales for national reserves.


Volume - 800,000 tonnes. Further 400,000 by Guangxi, according to sources.

Sellers - Domestic refiners.

Status - 500,000 tonnes to be bought on Jan 9, the rest on Feb 18.


Volume - 3 million tonnes approved, more expected.

Sellers - Direct from farmers, many in Heilongjiang.


Volume - 30 million tonnes.

Status - The first batch of 5 million tonnes already bought out of earlier approved 10 million tonnes; additional 20 million tonnes announced in Dec.

China has also increased buying of rice, rapeseed and cotton. (Reporting by Beijing newsroom, Editing by Peter Blackburn)