China's steel sector returning to normal
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Update time : 2021-05-26 22:21:42
Chinese steel-related companies are adjusting their businesses as prices return to normal, after a government crackdown on speculation in the market for much-needed materials for factories.
In respond to the months-long price jump for bulk commodities such as iron ore, China's top economic planner announced on Tuesday an action plan for strengthening price mechanism reform during the 14th Five-Year Plan period (2021-25).
The plan highlights the need to respond appropriately to price fluctuations for iron ore, copper, corn and other bulk commodities.
Driven by the release of the new action plan, rebar futures fell 0.69 percent to 4,919 yuan ($767.8) per ton on Tuesday. Iron ore futures fell 0.05 percent to 1,058 yuan, signaling a reduction in volatility after a slump triggered by the government's crackdown.
The action plan on Tuesday is part of recent efforts by Chinese officials to rein in what they have called excessive speculation in the commodity markets, leading to sharp losses of industrial commodities on Monday, both in China and abroad.
