China targets ‘speculators and accumulators’ to stop commodity boom – fr

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China targets ‘speculators and accumulators’ to stop commodity boom – fr


China has stepped up its fight against soaring commodity prices, calling top leaders to a meeting that threatened to severely punish violations ranging from excessive speculation to spreading fake news.
The government will demonstrate “zero tolerance” for monopoly behavior and hoarding, the National Development and Reform Commission said in a statement. statement after executives of major metal producers were summoned to a meeting in Beijing with several government departments on Sunday.

The push to curb the surge in metal prices spilled over into markets – steel falling more than 5% and iron ore dropping near the daily limit – before prices stabilized later in the month. meeting.

“With the shift in political risk towards government intervention, prices will certainly be affected by market sentiment,” said Li Ye, analyst at Shenyin Wanguo Futures Co. in Shanghai. “The rapid surge in commodity prices has severely affected manufacturers and market orders, resulting in losses and defaults.”

Government warnings about the consequences of commodity prices which are near the highest level in nearly a decade have been consistently beaten. But other than changes to the rules for trading on futures exchanges, there hasn’t been a lot of action. Beijing is likely to face a “potential exhaustion of policy options” to curb the rally, Citigroup Inc. said in a note.

By targeting commodity prices, authorities are combating trends over which they have only partial control as the global economy reboots with stretched supply chains. The government is also addressing the consequences of its own efforts to reduce greenhouse gas emissions, which have pushed up prices.

The NDRC statement is the toughest comment yet from the government, which began warning of rising commodity prices in April. Officials from iron ore, steel, copper and aluminum companies who met with five state agencies in Beijing on Sunday were told excessive speculation and rising international prices were to blame for the recent ones. advances.

Key companies should “actively discharge their social responsibilities” and take the lead in policing the market, the NDRC said in the statement. “Don’t collude to manipulate prices, fabricate and disseminate information about price increases, and not stack and push prices up. “

There has been unusual attention from policy makers on commodities in recent weeks. Prices exiting the factory in China rose at the fastest rate in more than three years in April, raising concerns that more expensive raw materials could hamper economic recovery or fuel higher consumer prices .

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