Money
China issues another warning to traders, declares war on commodity manipulation
China has again threatened to crack down on domestic traders and firms involved in speculation, collusion, or hoarding in what’s been described as a ‘ zero tolerance’ campaign and a war on booming commodity prices.
The latest threat raises the question about the long-term demand for Australian iron ore.
China’s state planner, “the National Development and Reform Commission”, announced the move yesterday after five government departments requested key players from the iron ore, steel, copper, and aluminum sectors for interviews.
A sell-off in iron ore futures and Australian miners followed the news, although the sharemarket still closed higher.
It’s another sign that Beijing won’t let up in bringing commodity prices down.
Australian iron ore has so far survived the restrictions and bans slapped on billions of dollars of exports by Beijing amid political tensions.