Learn Chinese - NDRC?warns against rigged price hikes of steels

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BIZCHINA / Center

NDRC?warns against rigged price hikes of steels

(Xinhua)
Updated: 2007-09-07 14:19

Steel?products are displayed on a metallurgy exhibition in Shanghai on
May 10. China's top economic planner?urged to curb "drastic fluctuations"
of domestic steel prices on?Thursday. [newsphoto]?

China's top economic planner said on Thursday efforts should be made to
curb "drastic fluctuations" of domestic steel prices which have been
rising for seven consecutive weeks.?

The National Development and Reform Commissions (NDRC) said the domestic
demand and export of steel products should be controlled. It warned
against coordinated actions to bid up the prices of steels.

According to the nation's market watchdog, the average price of four
types of major steel products rose by 17.8 percent to 4,358 yuan
(US$573.4) last week compared with the same period of last year.

Surging domestic demands, a slight decline in supplies and soaring iron
ore price have contributed to the recent price hikes of steel products,
said the NDRC.

China's fixed assets investment in urban regions rose by 26.6 percent
year-on-year to 5.67 trillion yuan?in the first seven months this year.
Investment in real estate sector reached 1.21 trillion yuan, up 28.9
percent.

While the supply of steels dropped by 5.3 percent in July over the
previous month due to suspension of production in some areas out of
concerns of energy saving and production safety.

The price of iron ore produced in North China's Hebei Province went up by
80 percent to 1,097 yuan?per ton compared with last year.

The economic planner also pointed to high flying international steel
prices, rumors about future price hikes and illegal operations of some
producers and sellers.

Factories could resume production with easing power shortages in autumn,
which would increase the supply, said the planner. But the commission
still called for intensified measures to reign in fixed assets
investment, stricter control over steel export and closer watch over the
market.

China became the world's No. 1 steel exporter in 2006, triggering
frequent disputes with its trade partners in the US and the EU.

(For more biz stories, please visit Industry Updates)

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