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 (573.4 U.S. dollars) 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 (747 billion U.S.
dollars) 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 (144.3 U.S. dollars) 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 U.S.
and the EU.
(Xinhua News Agency September 7, 2007)
