The standing meeting of the State Council (hereinafter referred to as the “National Convention”) held on May 26 deployed to further support the rescue and development of small and micro enterprises and individual business households. The meeting pointed out that various measures should be taken to help small and micro enterprises and individual businesses cope with the impact of upstream raw material price rise. We will support large enterprises to build a supply-demand docking platform for the industrial chain of key industries, guide the upstream and downstream of the supply chain to stabilize the supply of raw materials and coordinate production and marketing, and ensure supply and price stability. We will crack down on hoarding and driving up prices.

It is worth noting that this is the third time in 14 days that the standing meeting of the State Council has focused on the rise of prices such as commodities and raw materials. With the increase of policy, the commodity market continues to cool down. According to the price monitoring of business agency, the commodity price index BPI as of May 30 is 1047, down 2.06% from 1069 (2021-05-13), the highest point in the period, and 58.64% higher than the lowest point 660 on February 3, 2016（ Note: the cycle refers to December 1, 2011 to present)

Commodity prices rose and fell (3%) in week 21, 2021 (5.24-5.28)

In the 21st week of 2021 (5.24-5.28), 96 commodities in the list of commodity prices rose and fell in the ring ratio, accounting for 43.64% of the total. The commodities that are concentrated in chemical industry (37 kinds) and steel (18 kinds in total), and the commodities with a decline of more than 5% mainly focus on the chemical industry; The top three commodities fell by melamine (-31.41%), bisphenol A (-17.81%), acetone (-11.45%). The average weekly rise and fall was -0.69 per cent.

The business community believes that commodity prices have risen too fast this year, which has a negative impact on economic expectations, and inflation has increasingly affected people’s production and life. Many measures have been taken by the state to control short-term speculation in a timely and effective manner, which helps to guide the rational expectations of the market, squeeze speculative bubbles away, and maintain the smooth operation of commodity prices. In this context, short-term commodities will enter the rational callback stage, and it will take a while.