OREANDA-NEWS. January 05, 2012. China plans to set up its first state reserves for refined oil products this year, a person familiar with the situation said.

The move indicates Beijing's growing sense of urgency to secure crucial energy supply for an expanding economy and will likely give a fresh boost to global oil prices.

The reserves of refined oil products such as gasoline and diesel will be in addition to China's existing crude-oil reserves, which were set up in 2006.

The country's apparent consumption of refined oil products in the January-November period was 222.15 million metric tons, up 5%.

China is also planning to establish fertilizer reserves, the person, who didn't wish to be named, said.
Separately, the government plans to buy 6 million metric tons of rice this year for reserves expansion, the person said, adding that the authorities will also help some companies set up commercial pork reserves in a bid to mitigate volatile price swings. 

China is also set to raise imports of corn, soybeans, edible oil and cotton this year.

The government will continue to purchase rapeseed and cotton for reserves in 2012, and will curb expansion in industrial corn processing to keep corn prices stable, the person said.