China releases state reserves to ease overheating


LEE Eun Young +65 6682 3708;
Duncan CHAN +852 36684178;

China’s release of state reserves and US tapering hit metal prices

• China to release state reserves for key metals in a bid to cool down prices
• Talks of US tapering and US dollar gains are also negative for metal prices
• LME and SHFE metal prices have dipped, an inevitable normalisation from the frenzy
• Recommend staying on the sidelines until prices stabilise; no changes to our view and forecasts.