(Yicai Global) May 24 -- In an effort to curb the disorderly rise in commodity prices, Chinese regulators yesterday summoned major businesses in industries, including iron ore, steel, copper and aluminum, and demanded that they stop manipulating market prices, hoarding goods and jacking up prices.

Among the watchdogs were the National Development and Reform Commission, the State-owned Assets Supervision and Administration Commission of the State Council and the State Administration for Market Regulation.

The NDRC, China’s national economic planner, today issued a press release on its website about the meeting.

It said the sustained sharp rise in some commodity prices since the start of this year was the result of a combination of factors, including international transmission and excessive speculation, which has disrupted the normal production and sales cycle.

The regulatory authorities demanded that relevant key enterprises take the lead in maintaining price order in the commodity market. They should not collude with each other to manipulate market prices, fabricate and spread rumors about price rises, or hoard goods for profiteering and raise prices.

In addition, the regulators will closely monitor commodity price trends, strengthen joint supervision of commodity futures and spot markets, and check for unusual trading and malicious speculation, the press release stated, without specifying which businesses attended the meeting.

It added that regulators will also resolutely investigate and punish illegal acts that result in the implementation of monopoly agreements, in accordance with the law.

Prices of various commodities, including steel, have surged since the beginning of the year. Deformed steel bars, for example, were priced at CNY6,200 (USD964.1) per ton on May 13, surpassing the all-time record seen in 2008, and up from CNY5,200 per ton in late April.

In an effort to curb excessive price hikes, officials of the NDRC and the SAMR went to Hebei province, China’s steel production base, on May 12 to study the situation.

And on May 19, the State Council, China’s cabinet, called for curbing unreasonable rise in commodity prices and preventing the increases from being passed on to consumers.

Since May 14, the black commodities, led by iron ore, have fallen across the board, with steel prices pulling back to early May levels.

Editor: Peter Thomas