China's National Development and Reform Commission (NDRC) on Thursday unveiled new rules for the management of commodity price indices “as part of its ongoing efforts to curb unreasonable price swings and maintain stable prices in the commodity market,” according to a report on the announcement by China Daily.
The new rules take effect August 1 and require those providing price indices to be “independent of the direct stakeholders in the commodity and service markets covered by the index, and the basic information of the index providers, the index compiling plan and other necessary information should be fully disclosed,” the report said, noting that authorities “can conduct compliance reviews and take disciplinary measure for noncompliance.”
Meng Wei, spokesperson for the NDRC, said the agency will “also work with relevant parties to release batches of (reserves) in a timely manner for some time to come, to increase the market supply, ease the strain on enterprises costs and guide the prices to return to a reasonable range.” She noted that efforts to far to address unreasonable and rapid commodity price rises this year “have taken the heat out of market speculation” and that prices for items like iron ore, steel and copper have started to return to more-normal levels.
But she also issued what can be read as a clear warning to market participants: “The NDRC will closely monitor changes in the market, strengthen regulation of both futures and spot markets and maintain the normal order of the market.”