Supervision To Curb The Collective "Diving" Of Nearly 100 Kinds Of Raw Material Prices

Domestic futures market on May 19 night market diving market, black series, chemicals, agricultural products and other futures varieties fell collectively. As of the end of the night trading, coking coal fell by 7.98%, iron ore by 7.92%, steam coal by 7.81%, hot rolled coil by 7.21%, rebar by 7.07% and coke by 6.45%. Chemical products and agricultural products fell, glass fell 6.06%, soda ash fell 5.33%, methanol fell 4.97%; Palm oil fell 4.17% and soybean oil fell 3.89%.

Li Keqiang, premier of the State Council, presided over the executive meeting of the State Council on May 19 to make arrangements to ensure the supply and price of bulk commodities and maintain the stable operation of the economy. The meeting pointed out that since this year, the prices of some commodities have continued to rise, and the prices of some varieties have reached new highs due to multiple factors such as international transmission. We should attach great importance to the adverse effects of rising commodity prices, implement the deployment of the CPC Central Committee and the State Council, and, in accordance with the requirements of precise regulation and control and in view of market changes, highlight key comprehensive measures to ensure the supply of bulk commodities, curb the unreasonable price rise, and strive to prevent the transmission of commodity prices to residents.

This is already the State Council executive meeting twice in seven days focusing on commodity prices. On May 12, the executive meeting of the State Council held a request to track and analyze the situation and market changes at home and abroad, and effectively deal with the excessive rise of commodity prices and its associated effects.

According to price monitoring, the prices of nearly 100 kinds of raw materials have declined since May 12, among which 44 kinds have dropped by more than 3%. The top three commodities falling are hot rolled coil (- 12.67%), acetone (- 10.06%) and n-butanol (- 9.11%).

The reason for the decline of the prices of these raw materials is related to the imbalance of supply and demand caused by the conflict of high prices in the downstream of the terminal. In addition, from "straight into the sky" to "steep decline", the raw material market has turned into a sharp decline without the supervision of relevant departments, which shows that the regulatory authorities are determined to curb the rapid rise of commodities. It is expected that the commodity market will gradually return to the fundamentals of balance of supply and demand, and the increase will also decline.