The commodities market especially precious metals, industrial metals, crude all of that has turned negative for this week. While there are several reasons behind this, the major cues come from China because that is the movers and shakers of commodities.

The manufacturing data came in from China this week and it has been the lowest in the last fifteen months. COVID delta cases continue to rise in China, imports as well continue to decline and that seems to be putting pressure on the prices apart from the fact that China also is trying to curb heating up in commodity prices.

In terms of metals, China has released coal, and various other commodities from its reserves to ensure that the commodity prices do not run up.

As China’s strategic reserves have come to light, it is understood that China has 2 million tonnes of copper and out of that in the month of July, they already have released 50,000 tonnes.

Out of nearly 9,00,000 tonnes of aluminum, 1,40,000 tonnes have been released in the month of July. When it comes to zinc, out of 400,000 tonnes, 80,000 tonnes have been done.

China calls these successful auctions and adds that they would continue to do many more like these until the end of this year.

CNBC-TV18’s Manisha Gupta has more details. For more, watch the accompanying video.

(Edited by : Anshul)

First Published:Aug 5, 2021 5:40 PM IST