Chinese regulators warn metal firms to maintain good market order

25 May, 2021 12:00 AM printer

BEIJING: China’s market regulators warned industrial metal companies to maintain “normal market order” during talks on the significant gains in metals prices this year, the National Development and Reform Commission (NDRC) said on Monday.

The NDRC, China’s top economic planner, along with the industry ministry, the state-owned assets regulator, the State Administration of Market Regulation, and the China Securities Regulatory Commission held the talks on Sunday with major domestic commodity companies and urged them not to drive up prices, according to the statement, report agencies.

The talks follow a statement from China’s cabinet on Wednesday that the government would manage “unreasonable” price increases for copper, coal, steel, and iron ore. Those commodities, of which China is the world’s biggest user, have surged this year on rising demand as lockdowns to curb the Covid-19 pandemic have eased and government stimulus has boosted consumer spending globally.

“This round of price increases is the result of multiple factors, including international transmission but also have many aspects reflecting over-speculation,” the NDRC said, adding that normal production and sales in the industry are disrupted.