China warns metal industry of ‘zero tolerance’ for speculation as commodity prices soar
- The powerful National Development and Reform Commission has told key players in the metal industry it is cracking down on illegal activity
- At a meeting on Sunday, companies were told they must take the lead in maintaining ‘orderly prices’ for commodities that hit record highs early this month
China has stepped up efforts to curb skyrocketing raw material costs that pose a threat to economic recovery, summoning representatives of its metal industry at the weekend to warn them against any moves that would bid up prices.
The National Development and Reform Commission vowed on Sunday to show “zero tolerance” for illegal activity, including price fixing, spreading false information, hoarding or any speculative activity, according to a statement released after the meeting with the key companies in iron ore, steel, copper, coal and aluminium.
Beijing has grown increasingly concerned in recent weeks that a surge in raw materials costs could threaten the nation’s economic recovery from the coronavirus pandemic.
Parties have given feedback that there has been excessive speculation and hype
Some smaller private sector manufacturing firms have temporarily halted production because of the sharp increase in input costs. That has stoked concern that higher industrial prices will drive up consumer inflation, dampening spending that the government is counting on to power growth.