Reuters logo
UPDATE 1-Shanghai exchange limits zinc, lead positions for non-members
November 30, 2016 / 9:40 AM / 10 months ago

UPDATE 1-Shanghai exchange limits zinc, lead positions for non-members

(Updating with more detail throughout)

BEIJING, Nov 30 (Reuters) - Shanghai Futures Exchange said on Wednesday it will limit intraday position sizes in January and February zinc and lead futures for non-members, as one of China’s top commodity markets again moved to curb speculators that have piled into metals.

The limit on the zinc contracts will be 1,500 lots, equivalent to 7,500 tonnes of the metal used to protect steel from rusting. The lead limit will be 1,000 lots, equal to 5,000 tonnes of metal.

The change will take effect in the Dec. 1 session, including for night trading starting on Wednesday evening. It is the latest in a series of steps taken to control speculative buying that has driven metals prices higher over the past few weeks.

The accumulative measures as well as concerns about liquidity in China, the world’s top commodities market, triggered an exodus of cash from commodities on Wednesday, threatening a month-long rally.

Zinc had its worst day on Wednesday since the Shanghai futures contract was launched in 2007, after hitting a multi-year high in the previous session. The metal still managed to end November up 20 percent, also its biggest monthly gain since the contract started up.

Lead dropped 4 percent for its worst performance in five years but gained nearly 30 percent for its best monthly performance since contract launch in 2011.

Reporting by Beijing Monitoring Desk and Josephine Mason; Editing by Tom Hogue

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below