China speculators send price of aluminium to six-year high
Trading frenzy fuelled by government curbs on supply as it seeks to eliminate industrial overcapacity, reduce pollution
Shanghai
WITH a week to go, it's already the heaviest month ever for trading aluminium in China.
The metal has typically been one of the quieter contracts on China's mercurial futures markets, but supply reforms in the top producer and consumer have caught the attention of the nation's speculators and sent prices to the highest in almost six years.
Trading in August has already surpassed the previous monthly record set in November.
While the frenzy is raising concern that aluminium is just the latest Chinese commodity bubble that will be deflated by regulators before it bursts, there's also optimism that investors are tapping into a real shift in the fundamental outlook for the metal.
The Shanghai Futures Exchange has already stepped in to calm trading in steel and zinc this month as a surge in volume propelled prices to multi-…
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