Beijing’s powerful stockpiling agency is to buy 300,000 tonnes of aluminium in the coming weeks, in one of the most significant attempts to support the struggling Chinese metals industry since the 2008-09 crisis.
As well as being the largest consumer of industrial metals, China is the top producer of many, including aluminium for which it accounts for 40 per cent of global output.
But its smelters, which suffer from some of the highest production costs in the world, have been struggling with weak demand, high inventories and industry overcapacity.
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