As the worldwide prices for these industrial metals have fallen a lot, China’s National Development and Reform Commission (NDRC) have urged firms for maintaining the normal market orders. This move comes soon after the metal prices have increased in recent months as major economies emerge from the pandemic.
However, the price of the metals involves three months copper as well as aluminum which were among those affected.
In the London Metal Exchange, copper has dropped by 1.6% to $9,881 per metric tonne that while aluminum slipped by 1.09% to $2,37per metric tonne.
As per the report by state media outlet The Global Times that is the Key Chinese companies in steel, iron, and aluminum which were among those “collectively summoned”.
The Global times have even quoted a statement by the NDRC saying the meeting was held due to the continuous and drastic enhancement of a handful of commodities. In the last week, China had already made an announcement that it should step up measures all around the commodities supply by mentioning that it should step up measures around commodity supply by mentioned it might curb “unreasonable” prices.
Now, the commodity traders have also cautious after The White House mentioned on Friday which had now cut back its infrastructure bill from $2.25tn to $1.7n.
Further, with the cuts to the spending plan being in broadband, roads, and bridges which demand iron ore and copper could be curbed.
However, US Republicans have dismissed the changes which are insufficient for a deal that might mean further cuts to postponed the investment that is imminent. Global prices for most of the raw materials are required for the industries that involve copper, coal, steel, as well as iron ore that have now risen sharply in this year as lockdowns and other measures for curbing the spread of the Covid-19 have been eased. Now, huge economic stimulus measured by the government and the central banks worldwide has also been driven up due to the demand for the commodities.
Now, China is well known as the “world’s factory” for it is the biggest user of raw material all over the world.
In the month of April, the country has also exported unexpectedly increase as America’s quick recovery from the pandemic has helped outgrowth demand. However, the stalled, factory production in India suffers because of the coronavirus crisis, which helped the global market of Chinese goods. Almost in the same month import grew at the fastest pace which is more than a decade which is rising by around 43% from a year ago.