(Yicai Global) June 17 -- China has had initial success in restraining the surge in commodity prices, with the cost of raw materials such as iron ore, steel, and copper having fallen to varying degrees after a series of measures to dampen market speculation, the country’s top economic planning agency said today.

To safeguard normal market order, the National Development and Reform Commission stepped up oversight of the spot and futures markets for bulk commodities, probed market transactions, interviewed key industry players and associations, an NDRC spokesperson told a press conference.

The commission also looked into and verified clues about suspected market manipulation and price hikes, the spokesperson added.

The NDRC will work with the State Administration for Market Regulation and the China Securities Regulatory Commission to soon establish a regular consultation mechanism for joint supervision of the spot and futures markets.

The NDRC also noted that the National Food and Strategic Reserves Administration yesterday said it will release national stocks of copper, aluminum and zinc into the market. The release is aimed at mid- and downstream processors and producers through open bidding, with participating conditions favoring small and mid-sized firms as much as possible.

The NDRC will also make reserves available according to market conditions and increase supplies in a timely manner, while easing cost pressures on companies and helping prices to return to a reasonable range.

Key Tasks

The spokesperson said the NDRC will work with relevant departments to implement key tasks, in particular, to closely monitor market and price changes, strengthen supervision of the spot and futures markets, as well as maintain normal market order.

Also, efforts will be made to control prices of commodities essential to people’s livelihoods, and ensure stable market supply and basic commodity prices.

But China’s demand for crude steel is expected to rise for some time to come, the person said. The NDRC will strictly enforce regulations prohibiting new production capacity, continue to maintain a tough “zero tolerance” stance on capacity violations, and promote mergers and reorganization in the steel industry.

The commission will continue to promote reforms in key areas, including electricity, oil and gas, salt industry systems, state-owned forest farms and forested areas, and deepen the market-oriented reform of the railway sector, the spokesperson added.

The NDRC also said it is currently working with relevant departments to study and formulate the 2021 so-called negative list for foreign investment access. It will further reduce the negative list and promote the opening up of the service industry.

Editor: Peter Thomas