Economics
China Speculators Swarm to Aluminum as Cuts Spur Supply Bet
- August sees heaviest-ever trading in Chinese aluminum futures
- Speculators are taking cue from government’s reform agenda
Employees walk through the aluminum smelting room at the China Hongqiao Group Ltd. aluminum smelting facility in Zouping, China, on Monday, Nov. 4, 2013. China Hongqiao Group is China's largest private aluminum maker.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
With a week to go, it’s already the heaviest month ever for trading aluminum in China.
The metal has typically been one of the quieter contracts on China’s mercurial futures markets, but supply reforms in the top producer and consumer have caught the attention of the nation’s speculators and sent prices to the highest in almost six years. Trading in August has already surpassed the previous monthly record set in November.