China releases state reserves to ease overheating


Analyst


LEE Eun Young +65 6682 3708; eunyoung@dbs.com
Duncan CHAN +852 36684178; duncanchan@dbs.com


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.