China controls building material pricing

China will intervene temporarily to control prices of steel products, cement and other building materials in the earthquake disaster zone, the central government's economic planning agency said. The National Development and Reform Commission said in a notice that pricing authorities in Sichuan, Chongqing, Gansu and Shaanxi provinces have been authorized to undertake 'temporary price interventions' subject to the approval of provincial governments. The agencies are allowed to set a limit on profit margins, or guide prices, it said. Major producers of building materials are required to submit plans to raise prices for prior approval, it added. The government will also strengthen monitoring of prices of daily necessities in the quake-hit areas, with severe punishment promised for hoarding or price-gouging, it said.