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Commodity prices are on the slide today after China announced a new crackdown on ‘speculators and hoarders’ to deflate the boom in raw materials.
Following a meeting with China’s big metals producers, China’s National Development and Reform Commission issued a stern warning against commodity price manipulation.
The NDRC warned that against “excessive speculation” and hoarding of raw materials, and pledged to show “zero tolerance” for monopolies in the markets.
Pointing to the recent jump in raw material costs, the NDRC said:
“This round of price increases is the result of multiple factors, including international transmission but also have many aspects reflecting over-speculation.
It also warned that companies “should not collude with each other to manipulate market prices [or] hoard goods and drive up prices,”, pointing out that the surge in commodity prices are disrupting normal market order.
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