Chinese Speculators Trade 6 Months of Steel Production in 1 Day

iFeng: 螺纹钢疯了!一天成交量超过上半年全国产量
August 11, is a rebar futures crazy day, this day, turnover of 10.73 million hand, the transaction volume has reached 417.785 billion yuan. According to a hand 10 tons conversion, turnover of about 100 million tons, more than the first half of this year's national rebar production (99.59 million tons).

...It is understood that since June 14 to August 11, rebar main contract RB1801 cumulative up 30.82%, hot volume main contract HC1801 rose more than rebar, the same period rose 33.78%.

Rebar futures prices rose sharply, but also attracted the attention of regulators. Following the China Steel Association made a clear statement, the last time again on the rebar fees, margin to make adjustments, the intention is very clear to the current hot steel city cooling.

...Rebar futures prices rose rapidly, not only caused the concern of the market, but also caused the Development and Reform Commission, Ministry of Industry and China Steel Association of the high degree of concern.

Recently, China Steel Association said that the current sharp rise in steel futures prices is not driven by market demand or reduced supply of the market due to the recent steel prices is a speculation. Due to the excessive interpretation of the expected reduction in production, not the demand to promote the price rise.

...A number of steel price monitoring platform data show that the current steel prices since May 2012 the highest level, steel prices hit a five-year high. To the country's largest steel production base in Tangshan, for example, the August 8 rebar price of 4060 yuan per ton, compared with the beginning of the level of 3100 yuan per ton, up about 35%. Billet prices than the beginning of 2700 yuan per ton, up 36%.

With the iron and steel prices continued to rise rapidly, the industry said that the high risk of operation is gradually accumulating. Wang Guoqing said that in late August not callback, it is expected in September will callback.

In the current market conditions, not only the China Steel Association and industry experts repeatedly prompted the risk, steel listed companies have begun to prompt the risk.
Where do they get all the money for this rampant speculation?

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