Singapore (Platts)--26Nov2010/616 am EST/1116 GMT
The Shanghai Futures Exchange said it will raise trading margins and limits for all contracts from November 30 to curb speculative trading. The move follows similar measures by China's two other big commodity exchanges in Zhengzhou and Dalian. The margin requirements for copper, aluminum and steel wire will be increased to 10% of the total value of the contract from the current 5%, while for gold it will be raised from 7% to 10%. Fuel oil's margin requirement will be hiked from 8% to 10%. Margin requirements for reinforced bar steel contracts will be increased to 12% from the current 7%, while for zinc it would be 12% from the current 5%. Contract margins for rubber will see the largest hike from 5% currently to 13%. The exchange said it will also increase the daily price move limits for all the contracts to 6% from the current 5%. "(The exchange) will take further regulatory measures to combat illegal trading and stop unusual transactions to ensure smooth operation of the market," the exchange said. Beijing has pledged to curb spiraling prices and has unveiled a range of steps aimed at easing growing public fear about inflation, promising to crack down on speculators whom it blames for driving up commodity prices. The country's top economic planning agency, the National Development and Reform Commission, said Thursday that the nation's commodity futures prices have declined since the government stepped up measures to fight inflation earlier this month. The NDRC said average futures prices for copper, zinc, rubber, cotton, plastics, soybean oil and sugar have fallen by more than 10% between November 11 and November 14. --Calvin Lee, calvin_lee@platts.comSimilar stories appear in Metals Week. See more information at http://www.platts.com/Products/metalsweek