China steelmakers set up task force to investigate commodity prices
China's largest steel producers have formed a group to investigate the cause of high iron ore prices. Prices have reached their maximum, in connection with which the special group calls on the authorities to support the stabilization of the iron ore market.
According to Reuters, on June 27, a meeting of heads of Chinese steel industry enterprises was held in Beijing. They met to discuss a future strategy to combat high prices of imported ore. The group was headed by Baowu. With the participation of seven other top companies, the special group will study the pricing methodology and identify all the possibilities to reduce it to stabilize trading on the exchange market.
China Iron and Steel Association CISA and eight companies attending the meeting indicated the reason for the rise in prices. In their opinion, it lies in the poor development of the methodology for the operation of exchange trading mechanisms. The plans of a specially created group include a message about the current market situation and all the fears arising from it to the NDRC (Main Directorate of the National Commission for Development and Reforms) and other authorities that can somehow influence the situation with pricing policy.