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.
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
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.