Recently, the general price rise of bulk commodities has attracted wide attention. Since the beginning of this year, due to international transmission and other factors, the prices of some bulk commodities have continued to rise, and the prices of some commodities have hit new highs. Steel market prices once broke a new historical high, the average spot price of rebar once broke the 6200 yuan mark.
Since May, the domestic steel market has fluctuated sharply, from soaring to falling, which is closely related to China’s relevant policy regulation. On May 12, 19 and 26, the State Council, China’s cabinet, raised the issue of rising commodity raw material prices.
At the meeting, it was pointed out that we should attach great importance to the adverse impact of rising commodity prices, and take comprehensive measures to ensure the supply of bulk commodities and curb the unreasonable rise of their prices in response to market changes. We will implement the policies of raising export taxes on some steel products, imposing temporary zero-import tax rates on pig iron and scrap steel, and canceling export tax rebates on some steel products to increase supply in the domestic market. Enterprises should also cooperate with relevant authorities in supervising and prohibiting the spreading of false information, bidding up prices and hoarding of goods.
In addition, on 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 Regulation and the China Securities Regulatory Commission, held a meeting to jointly discuss key enterprises with strong market influence in iron ore, steel, copper and aluminum industries. On May 26, Chinese authorities issued a self-regulation proposal for the steel industry, which mentioned that steel enterprises should resist vicious competition, oppose price gouging that is far above cost during price rise, and oppose price dumping that is below cost during price decline.
Under the influence of national supervision and regulation, steel prices in various regions have fallen significantly, and some commodity prices have recently realized “cooling”. Experts point out that in the near future, as steel prices are expected to fall, regardless of the rate of decline and speed are very large, steel price bubble has been mostly extruded, steel and other raw materials prices will tend to stabilize in the future, with the increase of China’s supply, the price will return to a rational range.
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Post time: 02-06-21