China moves to keep commodity prices stable

BEIJING -- Chinese authorities have admonished key enterprises in the bulk commodity sector to rein in market irregularities and keep commodity prices stable, according to the National Development and Reform Commission (NDRC).

The NDRC, together with other four relevant government departments, reminded enterprises with market influence in sectors such as iron ore, steel, copper and aluminum at a Sunday meeting to run in accordance with laws and regulations and keep the market prices in order.

Industry associations such as the China Iron and Steel Association and the China Nonferrous Metals Industry Association also attended the meeting.

The recent price rally in commodities is partly driven by the transmission of global price rises, but excessive speculation in the market has also pushed up the prices, said the meeting.

Key enterprises should move to promote the coordinated development of upstream and downstream industries and keep the industrial ecology healthy, it said.

The meeting also urged the enterprises against irregularities such as price manipulation, the making and spreading of false information on price hikes, price gouging and hoarding.

For the next stage, authorities will closely monitor the trend in commodity prices, strengthen regulation over the co-movement between the futures market and spot market of bulk commodities and adopt a zero-tolerance attitude on irregularities, according to the meeting.

Enterprises and industry associations at the meeting pledged to regulate production activities and operate in keeping with the law to keep the market and prices stable.

Facing commodity price hikes, a State Council executive meeting last week outlined measures to better ensure the supply and stable pricing of commodities, including higher export tariffs on some iron and steel products, provisional zero import taxes on pig iron and scrap steel, and doing away with export tax rebates on some steel products.