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China's Great Ball of Money Is Rushing Into Commodities Futures

  • Steel rebar to cotton are surging, prompting cooling measures
  • Frenzied activity echoes stock trading before $5 trillion rout
Bloomberg business news

What's Behind the Iron Ore Rally

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Chinese speculators have a new obsession: the commodities market.

Trading in futures on everything from steel reinforcement bars and hot-rolled coils to cotton and polyvinyl chloride has soared this week, prompting exchanges in Shanghai, Dalian and Zhengzhou to boost fees or issue warnings to investors. While the underlying products may be anything but glamorous, the numbers are eye-popping: contracts on more than 223 million metric tons of rebar changed hands on Thursday, more than China’s full-year production of the material used to strengthen concrete.