Reuters
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Metals prices dropped Monday after China announced a strategy that could crack down on commodity hoarders who are driving costs higher.
- Chinese steel rebar futures closed 2.7% lower and iron ore dropped 3%, according to Bloomberg data.
- China will show "zero tolerance" for monopoly behavior and hoarding, said a report from the National Development and Reform Commission.
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Metals prices dropped Monday after China announced a strategy that could crack down on commodity hoarders who are driving costs higher.
Chinese steel rebar futures closed 2.7% lower and iron ore dropped 3%, after earlier being down more than 7%, according to Bloomberg data.
To push back against soaring commodities prices, China will show "zero tolerance" for monopoly behavior and hoarding and will continue to increase law enforcement inspections and investigate abnormal transactions, said a report from the National Development and Reform Commission.
The report was released after China summoned executives from top metals producers and officials from multiple government departments to talk about iron ore, steel, copper, and aluminium on Sunday.
The NDRC said that "excessive speculation" has disrupted the normal production and sales cycle in commodities and contributed to price increases. According to Bloomberg, the NDRC started warning about higher raw-materials prices in April.
Aluminum dropped 1.09% to $2,370 a ton on the London Metal Exchange. Copper was down 1.66% to $9,881 a ton.