China's top economic planner and market regulator is investigating market supply problems in order to stabilize prices of bulk commodities to ensure a smooth running of the manufacturing sector and the whole economy, said the official Wechat account of the National Development and Reform Commission (NDRC) on Wednesday.
NDRC and the State Administration for Market Regulation (SAMR) have sent a number of joint working groups to relevant provinces and cities to investigate the issue of maintaining the supply and stabilizing prices of bulk commodities.
The working groups will seek to understand the environment for firms participating in the commodity futures and stock market trading, and obtain first-hand feedback from middle and downstream companies on how they respond to changes in supply lines and prices from upstream enterprises, as well as their suggestions on combating speculation and ensuring a stable market supply. The groups will also listen to advices from relevant experts and market practitioners.
Iron ore futures contracts increased 2.62 percent and the rebar futures contracts increased 0.74 percent on Wednesday.
Last Thursday, Meng Wei, a spokesman for the NDRC, pointed out during a press conference that the next step is to closely monitor the market and price changes, and research ways to help enterprises to reduce expenditure and try to maintain a dynamic balance between market supply and demand, and strengthen supervision of the spot and futures market to maintain a normal market order.