China urges iron ore traders to reduce inventory, stocks to reasonable levels after Qingdao probe
- The National Development and Reform Commission held a symposium with the State Administration of Market Regulation
- They urged traders to help verify if there are any irregularities in the iron ore market, such as tactics to hoard or drive up prices
China’s state planner has told some iron ore traders to release excessive inventory and reduce stocks to reasonable levels, following a joint investigation with the market regulator in Qingdao, one of the country’s biggest iron ore ports.
The National Development and Reform Commission (NDRC) said in a statement on Thursday that it and the State Administration of Market Regulation (SAMR) have learned of changes of iron ore inventory in Qingdao Port and retrieved a list of companies with rapid growth in their stockpiles.
The authorities held a symposium and requested some iron ore trading firms to provide their recent inventory information, when they bought and sold the products, and other details including quantity and price.
The Thursday meeting in Qingdao was at the summons of the NDRC, with some domestic and foreign iron ore traders present including RGL Group, Tangshan Haichi, Glencore, Mercuria and Itochu, Reuters reported earlier this week citing sources familiar with the matter.