China’s state planner on Wednesday renewed its pledge to step up monitoring of commodity prices and strengthen supervision of spot and futures markets.

Iron ore and steel prices in China hit record peaks last month, adding to inflation pressures that could prompt monetary policy tightening.

Companies remain hesitant to invest in new projects with financing difficult to come by and question marks over long-term demand.

Recent performance combined with the trade activity and increasing sponge production indicates a strong near-term demand from China.

China is considering imposing a cap on the price of thermal coal as it struggles to contain high energy costs ahead of peak demand over the summer.

Copper prices drifted lower on Wednesday as high factory gate prices in China raised concerns of price curbs by the government.

Thermal coal prices across Asia have surged to multi-year highs amid strong demand and some supply constraints, but some types of the fuel have done better than others.