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China warns of punishment for commodity speculators

Iron ore, copper and aluminum prices under pressure

HONG KONG -- China has responded to the red-hot demand for commodities such as iron ore and copper by vowing to punish speculation, market manipulation and spread of false information, sparking a fall in the price of the key raw materials.

China is the largest consumer of commodities such as iron ore and copper, which have surged in price this year as the global economic recovery reignited demand for an array of manufactured goods. However, the upward pressure on prices has led to fears of higher global inflation, which could in turn threaten the economic revival.

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