Commodities soar on China's futures markets

Commodities from iron ore to rubber soared on Chinese futures exchanges Monday, as speculators bet that supplies will tighten, The Wall Street Journal reports. Prices of iron ore on the Dalian Commodity Exchange surged 7.2%, to a more than two-year high of 653 yuan ($95) a metric ton, while the most active steel-rebar futures traded on the Shanghai Futures Exchange jumped 5.2%, to 3,375 yuan a ton. Chinese investors have flocked to steel-related futures since the beginning of the year in expectation that supplies will fall following new government measures aimed at pruning excess capacity and curbing industry-related pollution. Some analysts don’t expect the rally to last, arguing that easy-money policies in China that make it possible for more speculative trading may be short-lived.