China pledges crackdown aimed at cooling soaring iron ore prices

China’s top economic planner is set to tighten oversight of iron ore pricing after prices have soared in recent months.

The National Development and Reform Commission will crack down on illegal activities such as spreading false information, hoarding and price gouging to keep the iron ore market stable, the agency said in a statement on Sunday.

Some information providers were summoned by the NDRC for publishing old or false news to confuse the public and adversely affect the market, the statement said. The companies are told to double-check their numbers and make sure they don’t jack up prices.

Optimism about a potential surge in demand as China’s economy recovers from pandemic disruptions has fueled the commodity’s strong gains in recent months. Iron ore futures in Singapore settled at $125.50 a tonne on Friday, the highest level since June.

Chinese authorities are also seeking to strengthen their long-term influence over iron ore pricing by consolidating purchases on behalf of about 20 of the country’s largest steelmakers. A new state-owned company called China Mineral Resources Group is expected to become the world’s biggest buyer of the material as soon as this year, people familiar with the matter said last month.