China’s state planner, the National Development and Reform Commission (NDRC), last week stated it would increase efforts to ensure stability in prices and supply of key raw materials in 2022. Focusing on iron ore and fertilizers specifically, the NDRC is aiming to stimulate further growth in the raw material-intensive industrial and manufacturing sectors. Further, the Commission committed to increase new infrastructure construction projects and encourage increased lending to manufacturers by state-owned banks.

In the housing market, banks in several large cities have cut requirements on mortgage down payments.

After iron ore prices surpassed $150 per tonne recently, regulators vowed to cool prices by putting controls on speculative trading in commodity markets. They also began conducting port checks and increased fees on futures trading. Last week, authorities requested information on stock inventories and requested verification that traders were not engaged in tactics to drive up prices. Some market participants were also advised to release excess inventories following an investigation into stocks at Qingdao port.

Although the Chinese economy continues to perform at reduced levels, further monetary easing policies may help to improve activity and drive increased demand for several dry bulk commodities in 2022.