China urges domestic producers not to drive up commodity prices amid inflation concerns

China called in some domestic steel, iron and aluminium producers on Sunday to discuss runaway commodity prices, reports say, resulting in a decline in base metal prices on Monday.

Several authorities in China held a talk on Sunday with major domestic commodity companies and urged them not to drive up prices, Reuters reported, citing a statement from the country’s National Development and Reform Commission.

The move is the latest official warning against strong commodity prices by the world’s largest consumer of industrial metals.

Prices for some commodities have risen significantly this year boosted by the easing of COVID-19 lockdowns and government financial support in many countries across the world.

A few days ago, China cautioned against the transmission of rising major commodity prices into consumer prices.

Story by ProactiveInvestors