COLUMN-China tries to tame animal spirits in commodity markets: Andy Home
(The opinions expressed here are those of the author, a columnist for Reuters)
By Andy Home
LONDON, April 26 (Reuters) - Nearly 240 million tonnes of steel rebar traded on the Shanghai Futures Exchange (ShFE) last Thursday.
That was equivalent to around a third of China's steel production last year, not just of construction-destined rebar but of every imaginable type of steel product.
And if that sounds like a lot of steel, consider the fact that on March 10 this year trading volumes on the Dalian Exchange iron ore contract exceeded one billion tonnes, more than the combined annual output of Rio Tinto , BHP Billiton and Brazil's Vale.
OK. So there's an element of double-counting at work here since Chinese exchanges tend to include both sides of a trade in their volume figures. Continuación...