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China Commodity Firms Cut Bullish Bets on Beijing Pressure

  • Traders reduced bullish bets on iron ore, coal under pressure
  • China vows crackdown on speculative bets after prices surge
Views of Haizhou National Mine Park as China’s Coal Industry Fights for Survival in a Greener World
Photographer: Qilai Shen/Bloomberg
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Several Chinese commodity firms pared back their bullish futures bets at the request of the government, according to people with knowledge of the matter, a sign of Beijing’s increasing concern over soaring raw material prices.

Over the last two weeks, at least four major firms, including steel mills and commodity merchants, reduced their long positions in locally traded products including iron ore and coal after attending meetings with government officials, said the people, who asked not to be identified discussing a sensitive matter. At least two major futures brokerages were also advised by China’s exchanges to cap positions and trading volumes in contracts that are highly volatile, said two of the people.