Commodities fell sharply after China signalled it would focus on efforts to cool soaring prices, warning of “excessive speculation” as concerns grow over rising inflation in the world’s second-biggest economy.
The National Development and Reform Commission, China’s economic planning agency, said on Monday it would crack down on monopolies in commodities markets, the spread of false information and hoarding.
That message rippled through markets on Monday with the main futures contract for iron ore dropping 7 per cent on China’s Dalian exchange to Rmb1,049 ($163) a tonne. Iron ore has lost almost a quarter of its value since hitting a record high earlier this month. The aluminium futures contract for July delivery dropped 3 per cent on the Shanghai exchange.
The Chinese government’s statement reflects its mounting concerns over soaring commodity prices, which have been turbocharged by the country’s industrial recovery from…