State planner investigates fertilizer market, following record urea prices

China's state planner said on Monday it was launching an investigation into the urea market, after prices of the fertilizer have surged, Reuters reports.

This 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 fertilizers 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 by 9 percent in the first 10 days of June to a record 2,674 yuan (US$413.88) per ton, according to the National Bureau of Statistics.

The most actively traded urea contract on the Zhengzhou exchange fell by 3 percent on Monday morning to 2,248 yuan. The NDRC has recently launched market investifgations into coal and iron ore, after the country reported its highest producer inflation in more than 12 years.