Nov. 18, 2010 （China Knowledge） - The commodities futures prices in the Shanghai Futures Exchange tumbled yesterday on market speculation that the central government may further tighten monetary policy to curb inflationary pressure and cool down the economy, sources reported.
According to the report, prices of copper, zinc and natural rubber futures fell to the daily limit, and the prices of aluminum deformed steel bars and wire products also tumbled.
Lin Hui, an analyst from Orient Futures Co Ltd, noted that the crowding-out effect caused investors dumping the commodities futures, signifying the insufficient confidence of the investors. Investors remain cautious that the tightening financial measures may reduce the market liquidities and restrict capital flowing into the hard assets.
The benchmark copper futures plunged to the daily limit to RMB 61,550 per ton, while natural rubber futures followed the suit to RMB 32,500 per ton.
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