(Updating with more detail throughout)
BEIJING Nov 30 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)