China’s Options to Control Commodities Prices

The video discusses measures taken by commodity exchanges, such as trading curbs and higher fees, to deter speculative investments, which have had limited impact. It highlights the fluctuating iron ore prices, indicating strong demand. The video explores potential actions Beijing might take, including leveraging state support to manage supply and considering the release of stockpiles. The coal market is examined, noting China's efforts to increase supply despite surging prices.

What was the primary reason for commodity exchanges instituting trading curbs and higher fees?

• To reduce transaction costs

• To deter speculative investments

• To increase market liquidity

• To encourage foreign investments

What does the fluctuation in iron ore prices suggest about the market?

• Demand is strong

• Prices are stable

• Supply is exceeding demand

• Demand is weak

What is one of the strategies Beijing might use to manage commodity supply?

• Increase import tariffs

• Reduce mining activities

• Ban commodity exports

• Leverage state support to boost supply

What challenge does Beijing face despite trying to increase coal supply?

• Low international demand

• Lack of mining resources

• High production costs

• Surging prices due to high demand

What is one action China could take to influence commodity market prices?

• Increase export quotas

• Release stockpiles of base metals

• Implement stricter import regulations

• Decrease domestic production