Metallurgy / Chemicals / Rubber & Plastics

The executive meeting of the State Council held yesterday (May 19) proposed that arrangements should be made to ensure the supply and price stabilization of bulk commodities and maintain the stable operation of the economy.

This is the second time that the regular meeting of the State Council "calls" the price of bulk commodities in 7 days!

The executive meeting of the State Council held on May 12 requested to track and analyze the domestic and foreign situation and market changes, and effectively respond to the excessively rapid rise in commodity prices and its collateral effects.

The State Council executive meeting on May 19 pointed out that since the beginning of this year, due to multiple factors such as international transmission, the prices of some commodities have continued to rise, and the prices of some products have reached new highs. It is necessary to attach great importance to the adverse effects of rising commodity prices, implement the arrangements of the Party Central Committee and the State Council, and focus on market changes in accordance with the requirements of precise regulation and control, highlight key and comprehensive measures to ensure the supply of bulk commodities, curb unreasonable price increases, and strive to prevent the Consumer price transmission.

First, multiple measures must be taken to strengthen the two-way adjustment of supply and demand. Implement policies such as raising export tariffs on some steel products, implementing zero import tentative tax rates for pig iron and scrap steel, and canceling export tax rebates for some steel products, so as to promote increased domestic market supply. Efforts will be made to adjust the structure and curb high-energy-consuming projects. Take advantage of my country's rich coal resources, urge key coal companies to increase production and supply under the premise of ensuring safety, increase output from wind power, photovoltaics, hydropower, and nuclear power, and ensure energy during the peak summer. Persist in opening wider to the outside world, strengthen the adjustment of bulk commodity imports and exports and reserves, promote customs clearance facilitation, make better use of two markets and two resources, and enhance the ability to maintain supply and stabilize prices.

Second, we must strengthen market supervision. Give full play to the role of industry associations and strengthen industry self-discipline. Strengthen the linkage supervision of the futures and spot markets, and take targeted measures in due course to investigate abnormal transactions and malicious speculation. Strictly investigate and punish activities such as reaching agreements to implement monopoly, spreading false information, driving up prices, especially hoarding, etc., and publicly exposed them.

Third, we must maintain the stability of monetary policy and the basic stability of the RMB exchange rate at a reasonable and equilibrium level, and rationally guide market expectations. Help market players, especially small and micro enterprises and individual industrial and commercial households, cope with production and operation difficulties such as rising costs. Implement the tax reduction and exemption policies for small and micro enterprises and individual industrial and commercial households, and fully refund the incremental value-added tax credits for advanced manufacturing enterprises on a monthly basis, and streamline the procedures for enjoying preferential tax policies. Implement direct monetary policy tools, increase re-lending and rediscount to support inclusive finance, implement policies such as small and micro enterprise financing guarantees, fee reductions, and subsidies, and guide banks to expand credit loans.