Steel and iron-ore prices in China plunged on Wednesday after exchanges there lowered the daily trading limit and raised margin requirements in an effort to curb speculation, The Wall Street Journal reports. Shanghai steel-rebar futures for delivery in December pared some losses in late Asia trade to close 5.1% lower at 3,044 yuan ($441) a metric ton. Dalian iron-ore futures for delivery in January ended down 6.0% at 598 yuan a ton. “We expect to see more consolidation in the commodity futures markets and a possible spillover in equity markets,” Argonaut Research said in a report. In China, commodity markets are dominated by speculators and short-term retail investors, as well as hedge funds with abundant liquidity. The recent rally in metal prices was largely driven by Trump’s surprise win, analysts say.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved