It Might Be Harder Than China Thinks to Control Commodity Surge
- Iron ore retreats from record as steel, coal extend advances
- Beijing’s ability to curb rally is hampered by global demand
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A scorching rally in industrial commodities has spurred China to try and temper prices, though the impact may prove fleeting as the global boom in demand for raw materials is set to drive markets to new highs.
Iron ore futures kicked the week off with a surge by the daily limit to a record, though prices eased Tuesday after the Dalian Commodity Exchange raised trading limits and margin requirements and pledged to strengthen market supervision. Steel in Shanghai and coal in Zhengzhou rose after the bourses said they will increase trading fees.