MASSIVE STEEL REBARS TRADES IN CHINA

In another indication of significant bets being taken on the direction of Chinese infrastructure spend, one of the most influential markets for steel rebar in China saw trade worth nearly 50% more than the entire value dealt on the Shanghai Stock Exchange late last week.

Reuters cited analysts who said much of the recent price and volume gains in Chinese commodity futures could be down to financial investors and not consumers.

The wire service said Yu303 billion (US$47 billion) in rebar contracts traded on the Dalian Exchange on Thursday last week, based on a record 111.8 million tonnes of steel changing hands.

On the same day the Shanghai Stock Exchange traded Yu209 billion.

In an effort to stem massive speculation and heated trading, the bourse decided to increase the trading margin for iron ore futures to 8% from 7% previously. It will also raise transaction fees and the daily movement limit for some products.