China Yunnan province to buy metals to help firms

A Chinese province surprised metals markets on Monday with a seemingly huge plan to buy up 1 million tonnes of base metals to support local smelters.

But the impact was diluted after a local official said it also included ores, primary metals and semi-finished products.

Under the plan, detailed on the Ministry of Land and Resources Web site (www.mir.gov.cn), Yunnan province, a major base metals producing region in southwest China, would buy up metals, including 100,000 tonnes of tin, and hold them for a year.

But that figure represents around one quarter of global annual tin production, prompting sceptical responses which swiftly deflated an initial 10 percent bounce in tin prices MSN3 on the London Metals Exchange.

"The purchases include ores, primary metals and semi-finished products," an official at Yunnan's Economic Committee told Reuters on Monday. "The government is going to do it," the official said.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.