| Only a month ago, Chinese commodities prices were skyrocketing, led by a stampede of speculative investors betting on early signs of recovery in the world’s second-biggest economy. Now, not only has the bubble been popped but a dive has left steel and iron futures 23 per cent off their April peaks and in bear market territory.
This in turn threatens to put the brakes on the restart of steel plants that became profitable as prices rose, as well as drive investors to other markets. When prices shot up in April, Chinese commodities exchanges moved quickly to raise trading fees and push speculators to dial down trading positions, anxious to ensure there was no repeat of the boom and bust Chinese stocks suffered last year...............................................Full Article: Source
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