NDRC Issues Action Plan to Control Bulk Commodities Prices
While Chinese steel related companies are adjusting their businesses as prices return to normal, after a government crackdown on speculation in the market,
While Chinese steel related companies are adjusting their businesses as prices return to normal, after a government crackdown on speculation in the market, China's top economic planner National Development and Reform Commission has announced the action plan for strengthening price mechanism reform during the 14th Five-Year Plan (2021-25), highlighting the need to well responding to the price fluctuations on iron ore, copper, corn and other bulk commodities, as part of the efforts to help to achieve the national strategic goal of carbon peak, carbon neutral. The first of its kind addressing bulk commodities market regulation for next five years, the plan places special emphasis on further strengthening price regulation and market expectation management concerning people's livelihood ranging from eggs and wheat to cotton and iron ore.
The plan also cites the need for improvement in key commodity forecasting early warning and monitoring system, advancing the floor price policy for rice, wheat, and cotton.
This came in line with the latest effort by Chinese officials to further crack down on what they call excessive speculation in the commodity markets, leading to the sharp losses. The historical rise in commodity prices, posed by combined factors, including international transmission factors and excessive speculation, has severely disrupted the normal production and sales cycle and led to prices spiking across a number of commodity areas.