China threatens speculators over soaring commodity prices

China has threatened severe punishment for speculators and spreaders of fake news in its latest effort to cool booming commodities prices.

The Chinese government will have "zero tolerance" for monopolies in markets, speculation and hoarding, the National Development and Reform Commission said. The commission published its statement after summoning top metals producers to a meeting on Sunday, Bloomberg reported.

The statement is the most hardline yet from China, which has been warning about rising raw materials prices since April. State agencies told metals producers on Sunday that excessive speculation and rising international prices were the cause of recent increases.

China has only limited influence over commodity prices, which are rising as the global economy rebounds from the worst of the Covid-19 crisis with supply chains under pressure. Policymakers in China and other countries are concerned that rising input costs will send prices of manufactured goods up, adding to inflation pressures.

The world's second-biggest economy is in a race for materials with the US, which is belatedly investing in transport and other essential infrastructure to support economic growth. The prices of steel and iron ore fell on Monday in response to the commission's warning.