State eyes base metal buys to up reserves

The Chinese government is considering buying all types of base metals as reserves to help boost domestic demand, Wen Xianjun, vice chairman of State-funded China Nonferrous Metals Industry Association, said.

Previously, Wen had said that China could buy up stocks of aluminum to help struggling smelters. But the central government may cast the net much wider. "All base metals are being considered," he told reporters yesterday.

China's metals sector has been hit hard by a slump in demand, which has caused stocks to build up and prices to plummet, forcing many to suspend part of their production.