An worker works at a copper processing plant in Dongyang, Zhejiang Province. (Photograph by BAO KANGXUAN / FOR CHINA DAILY)
China will take additional motion to curb rising commodity costs and crack down on hoarding and commodity hypothesis, marking a key step in guaranteeing secure costs and provides out there, officers and officers stated on Monday. consultants.
Wan Jinsong, director of the pricing division of the Nationwide Growth and Reform Fee, stated the fee will work with the departments to liberate extra copper, aluminum and zinc from nationwide reserves to spice up the provision of the nation. market and alleviate strain on manufacturing and enterprise operations.
Within the subsequent step, regulators will intently monitor the event of commodity costs, tighten regulation of the futures and spot markets, and crack down on market violations corresponding to hoarding to take care of regular market order, in keeping with Wan. .
On July 5, the NDRC and the Nationwide Meals and Strategic Reserves Administration accomplished the primary launch of nationwide reserves, publicly auctioning 100,000 metric tonnes of copper, aluminum and zinc. Greater than 200 non-ferrous steel processing and manufacturing corporations participated within the public sale, and transaction costs have been about 3-9% beneath market costs that day, Wan stated.
“It’s believed that the discharge (of nationwide reserves) has despatched a constructive sign that the federal government will assure secure provides and costs of uncooked supplies, which helps stabilize market expectations,” she stated. “The exit gives a window of alternative for intermediate and downstream processing and manufacturing corporations to replenish their inventories, and it additionally helps some corporations scale back the price of uncooked supplies.”
Consultants stated they consider that with the assistance of efficient authorities measures to make sure secure costs and provides of uncooked supplies, costs will progressively return to an inexpensive vary.
Zhou Maohua, analyst at China Everbright Financial institution, praised the measures taken by the federal government to curb rising commodity costs and crack down on unlawful actions corresponding to hoarding, saying that the components supporting this spherical of hypothesis on uncooked supplies are weakening.
“Commodity costs will stabilize with the regular restoration of the world financial system, the tightening of the financial and monetary setting and the resumption of commodity provides,” Zhou stated.
Tao Jin, deputy director of the macroeconomic analysis middle of the Suning Institute of Finance, stated that whereas the beneficial properties in commodity costs have led to revenue development for China’s industrial sector at an early stage, the worth improve will now result in a elevated manufacturing prices. for corporations in intermediate and downstream manufacturing industries and can improve dangers within the nation’s industrial chain.
He stated extra efforts needs to be made to extend home provides, crack down on irregularities on market violations, strengthen the cooperative growth of international mineral sources, and encourage home manufacturing and mining corporations to speculate overseas.
At a press convention in Beijing on Monday, NDRC spokesperson Yuan Da stated that China’s financial system had grown steadily within the first half of 2021 and that the nation had the boldness to realize the purpose. annual development forecast for this yr.
Yuan stated the NDRC will make an incredible effort to proceed to deepen structural reforms on the provision facet, concentrate on increasing efficient home demand, additional help the event of the actual financial system, push ahead with reforms. and openness, and try to maintain the financial system in good working order. inside an inexpensive vary.