Beijing highlights bulk commodities price stability again

Chinese Premier Li Keqiang highlighted the importance of bulk commodities price stability again when chairing the State Council's executive meeting on May 19, calling for a close monitoring of the adverse impact brought by the surging bulk commodities prices.

Li called for well-targeted measures to guarantee bulk commodities supplies, to curtail the prices from irrational gains, and to stop the any adverse effect from spreading into the customer price index.

He suggested three means, which are, firstly, increasing domestic supply through higher imports of steel, pig iron ore and scrap, increasing domestic coal output while curbing power-intensive industries, secondly, enhancing market surveillance and self-disciplinary efforts in the related industries, and investigating abnormal and malicious and speculative trading, and severely punishing activities including market monopoly, spreading false information, and price gouging and hoarding.

Thirdly, the stability in monetary policy and exchange rate should be maintained, and market expectation should be guided correctly, he added.

Beijing has been sternly warning of the too high bulk commodities prices repeatedly since May 12, and on Wednesday, Mysteel SEADEX 62% Australian Fines plunged by $9.6/dmt on day to $213.45/dmt CFR Qingdao after two days of rebounds previously, and China’s national price of HRB400E 20mm dia rebar under Mysteel’s assessment fell by Yuan 153/tonne ($23.8/t) on day Yuan 726/t in total over May 13-19.

Other than the bulk commodities prices, Li also shared at the meeting that in the coming months, Beijing will continue its efforts in aiding the small- and micro-sized and individually-owned enterprises through the operational difficulties via tax rebates or removal, and related application procedures will be simplified to enable their quick access to such reliefs. He also urged banks to increase their financing to such businesses.