InvestorQ : Have there been any restrictions in the supply of base metals by China?
sara Kunju made post

Have there been any restrictions in the supply of base metals by China?

Answer
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Dawn Cherian answered.
2 years ago


China has been forced to restrict its capacity of base metals production sharply due to key environmental concerns. In fact, most of the Chinese metal factories and mining operations were seriously flouting environmental norms. The Chinese government has clamped down heavily on such defaulters and forced cessation of operations. China is under tremendous pressure on the Paris Climate Change accord and with the US walking out the onus is on China to take the lead. This clampdown has led to major constriction in supply of key base metals and that has kept prices buoyant. In fact, due to the supply restrictions over environmental concerns, most base metals have gone into a supply deficit situation. That is what is holding prices of base metals in the global market.