Posted on 25 May 2021
China’s five top governing bodies including the National Development and Reform Commission (NDRC), the country’s top economic planner, held a meeting on the morning of May 23 with the major domestic enterprises in the sectors such as iron ore, steel, copper and aluminum industries on bulk commodities price surges so far in 2021, according to a NDRC posting on May 24.
Other than NDRC, the Ministry of Industry and Information Technology, the State Administration of Market Regulation, the State-owned Assets Supervision and Administration Commission of the State Council, and the China Securities Regulatory Commission, all of which are the governing bodies of the nonferrous and ferrous enterprises, the national commodities prices, the state-owned enterprises, and the futures and securities markets respectively.
It was pointed out at the meeting that the domestic bulk commodities price increases had been due to a combination of many factors including the ripple impact of global price surges, but overzealous speculation had a role to play too, as it had disrupted the normal production and business orders.
The major enterprises in China’s related ferrous and nonferrous sectors, thus, are asked to help with a coherent development between upstream and downstream, to take the lead in maintaining the order in the bulk commodities market and prices, to refrain from any misconduct such as market price manipulation, spreading rumour, and gauging or hoarding.
Related regulatory bodies will closely watch the bulk commodities price movements, enhance surveillance, and will adopt “zero tolerance” practice when dealing with a series of misconducts including abnormal trading and malicious speculation.
Ever since May 12, China’s various top governing bodies have been repeatedly warning of the too high bulk commodities prices, explicitly expressing its determination on preventing the adverse impact of commodities prices on the downstream industries or the Consumer Price Index.
Source:Mysteel Global
