The bulk commodities collectively "step on the brakes", and five departments including the National Development and Reform Commission jointly interviewed key commodity companies!

At present, raw materials, freight, and exchange rates are undoubtedly the "three mountains" for foreign traders. It is reported that the National Development and Reform Commission and other five departments have jointly interviewed and reminded key commodity companies to severely investigate and punish violations such as reaching monopoly agreements, spreading false information, driving up prices, and hoarding.

Since the beginning of this year, when the high point of commodity prices has continuously refreshed market perceptions, there have been voices of concerns about global inflation from all walks of life. In fact, in order to curb the accelerated rise in commodity prices, relevant domestic authorities have taken control measures several times.

The National Development and Reform Commission and other five departments jointly interviewed to remind key commodity companies

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According to the National Development and Reform Commission, on the morning of May 23, five departments including the National Development and Reform Commission, the Ministry of Industry and Information Technology, the State-owned Assets Supervision and Administration Commission, the State Administration for Market Supervision, and the China Securities Regulatory Commission held a meeting to jointly discuss iron ore, steel, Key enterprises with strong market influence in copper, aluminum and other industries, iron and steel industry associations, non-ferrous metals associations participate.

The meeting pointed out that since the beginning of this year, the prices of some bulk commodities have continued to rise sharply, and the prices of some varieties have reached new highs, which has aroused widespread concern from all walks of life. This round of price increases is the result of a combination of many factors, including international transmission factors, but also in many aspects that reflect excessive speculation, disrupting the normal production and sales cycle, and contributing to the price increase.

The meeting requested that relevant key enterprises should improve their positions, establish awareness of the overall situation, actively fulfill their social responsibilities, promote the coordinated development of upstream and downstream industries, and maintain a good industry ecology; strengthen legal awareness, operate in an orderly manner in accordance with laws and regulations, and take the lead in maintaining market prices for bulk commodities. Order, must not collude with each other to manipulate market prices, fabricate and spread information about price increases, and must not hoard odds and drive up prices. Relevant industry associations should correctly perform the functions of industry autonomous organizations from the perspective of conducive to the long-term and healthy development of the industry, give full play to the role of bridges, guide industry enterprises to strengthen self-discipline, and jointly maintain the normal market order of the industry.

In the next step, the relevant regulatory authorities will closely track and monitor the price trends of bulk commodities, strengthen the joint supervision of bulk commodity futures and the spot market, "zero tolerance" for illegal activities, continue to increase law enforcement inspections, investigate abnormal transactions and malicious speculation, and resolutely enforce laws and regulations. Investigate and punish illegal acts such as reaching a monopoly agreement, disseminating false information, driving up prices, and hoarding.

Commodities collectively "step on the brakes" and prices of more than 100 kinds of raw materials have fallen
According to the monitoring of the business agency, as of May 21, the BPI of the commodity price index was 1055 points, a decrease of 10 points from the beginning of the week, and a decrease of 1.31% from the highest point in the cycle of 1069 points (May 13, 2021), which is lower than the lowest point. 660 points (February 3, 2016) increased by 59.85%. (Note: Period refers to December 1, 2011 to present)
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In terms of specific products, there are 114 kinds of commodities that fell week-on-week in the commodity price list, accounting for 52.05% of the total. Mainly concentrated in the chemical industry (a total of 36 kinds) and steel (a total of 17 kinds), the commodities with a decline of more than 5% are mainly concentrated in the steel sector; the top 3 commodities with a decline are isooctanol (-12.97%) and I-beam ( -10.80%), channel steel (-10.77%). The average increase and decrease this week was -1.03%, which is the first time there has been a decline in the past 7 weeks.
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In early trading today, the black series fell. The main iron ore futures contract fell more than 9% in early trading, and the main contract of hot coil and thread fell by more than 6%. Near noon, the decline in commodities narrowed. As of 13 points, iron ore 2109 fell 6.9%, hot coil 2110 fell 4.3%, and thread 2110 fell more than 4%.
In general, there are two factors that determine the price trend of bulk commodities-the structure of supply and demand, and the loose monetary policy. With the recovery of the giant economies of China, the United States and Europe, the demand for commodities is also increasing. Statistics show that China consumes nearly 40% of the world’s commodities each year, of which copper and aluminum account for more than half, while the United States consumes about 15%. However, the problem is that the producing countries that supply most of the bulk raw materials belong to the third world countries, such as South American countries such as Chile and Brazil. Due to management problems and insufficient vaccines, these countries are still raging and the supply of raw materials is restricted.