Beijing further urges metal sectors to stabilise prices

China's main economic planning body the NDRC and other four regulators yesterday met with domestic firms in the steel, iron ore, copper and aluminium sectors following a state council meeting last week calling for stability in bulk commodity prices.

China needs to take more steps to curb unreasonable price increases for bulk commodities to prevent these costs from being passed on to consumers and ensure supplies, Chinese premier Li Keqiang said at a state council executive meeting on 19 May. This statement was stronger than his call in the previous week to curb soaring commodity prices with more specific measures such as raising tariffs and cancellation of rebates on steel product exports.

Yesterday's meeting pointed out that this round of price rises is the result of a combination of many factors, including malicious speculation, urging companies to take the lead in maintaining pricing order in commodity markets, not to collude with each other to manipulate market prices and not to fabricate and spread false information about price increases.

Relevant regulatory authorities will closely track and monitor the trend of commodity prices, strengthen linkage supervision on commodity futures and spot markets and have zero tolerance for illegal activity, the meeting said. China's iron and steel association and the nonferrous metals industry association were also present at the meeting.

September iron ore futures on the Dalian Commodity Exchange closed at 1,045 yuan/t ($162/t) this morning, down by Yn77.5/t or 6.9pc compared with the settlement price on 21 May. October rebar futures on the Shanghai Futures Exchange (SHFE) fell by 4.03pc or down by Yn208/t to Yn4,950/t at the morning's close, with October hot-rolled coil futures falling by 4.28pc to Yn5,295/t.

July copper contracts on the SHFE dropped to Yn71,660/t by the morning's close, down by 0.7pc from Yn72,160/t compared with the 21 May settlement price.