Market participants have grown antsy in the absence of any indication of a slowdown in this upward momentum.
They believe the unprecedented price rally has gone far beyond market fundamentals, creating a speculative bubble in the country, which is the world’s largest ferro-alloy producer.
Derivatives for ferro-silicon and silico-manganese had already recorded a strong performance in the first eight months this year, primarily due to supply concerns with main production regions continually experiencing electricity outages
and energy-related constraints
Ferro-silicon and silico-manganese futures listed on the Zhengzhou Commodity Exchange (ZCE) had soared by 59% and 29% respectively over the January-August.
Such gains have drawn a group of new speculators to the commodities markets. As a result, large amounts of money have entered these markets, bringing along with them uncertainty and volatility, market participants told Fastmarkets.
In September, news that several regions in southern China had ordered fresh production...