China state planner launches investigation into fertiliser market

[BEIJING] China's state planner said on Monday it was launching an investigation into the urea market, after prices of the fertiliser have surged.

The probe is the latest action taken by the National Development and Reform Commission (NDRC) to cool price gains for major raw materials.

The NDRC recently sent a team to the Zhengzhou Commodity Exchange as well as some urea production and distribution companies and retailers to learn more about the supply and demand of urea and prices, it said in a statement on its official WeChat account.

The Commission will "strengthen market supervision and resolutely crack down on hoarding, price hikes and fabricating and disseminating information on price increases" to maintain market order and the stable prices of fertilisers and other agricultural materials, it said.

Urea prices have risen to a record amid lower output, high energy costs and surging demand both at home and overseas.

Prices jumped 9 per cent in the first 10 days of June to a record 2,674 yuan (S$556.76) per tonne, according to the National Bureau of Statistics.

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The most actively traded urea contract on the Zhengzhou exchange fell 3 per cent on Monday morning to 2,248 yuan.

The NDRC has recently launched market probes into coal and iron ore, after the country reported its highest producer inflation in more than 12 years.

REUTERS