Industrial commodity prices extended sharp losses on Monday both in China and abroad, after officials in China, the world's factory floor and largest consumer of raw materials, intensified a top-down campaign to rein in runaway prices that have already exerted pressure on factories and businesses and further threaten to derail China's hard-fought economic recovery from the COVID-19 pandemic, Global Times reported.
The latest effort by Chinese officials to further step up the crackdown on what they call excessive speculation in the commodity markets came after repeated warnings and actions by local governments and industry bodies over the past several weeks failed to bring prices down to a "reasonable" range, and risks posed by the soaring prices for the Chinese economy continue to emerge, analysts noted. In a rare step, five Chinese agencies on Sunday warned leading companies not to engage in price gouging, said Global Times.
Further highlighting China's commitment to tackling soaring commodity prices, Premier Li Keqiang on Monday inspected a major port in Ningbo, East China's Zhejiang Province on Monday and heard reports on trend in global commodity prices. During the tour, Li also highlighted the impact of high commodity prices on factories and asked the port to improve import and storage operations, according to an official statement.
While China's efforts are aimed at stabilizing the domestic commodity markets to stave off potential risks, they could also help end a months-long rally in global commodity prices, analysts said. Major suppliers, particularly Australia - which has enjoyed record-high prices for its main export to China, iron ore, despite losses in other trade--could feel the pain, they added. Australia's days of "profiteering" may be marked, an expert said, Global Times reported.
