Today in metals, the London Metal Exchange has introduced position limits for a new contract and China’s commerce minister said anti-dumping measures against its steel exports won’t solve the global overcapacity problem.
LME Introduces First Position Limits
The London Metal Exchange plans to introduce limits on large positions for the first time to avoid market squeezes, initially on its new aluminum premium contract, it said on Tuesday.
The use of position limits may be expanded to other contracts if upcoming legislation requires them, the LME said in a statement.
China Scoffs at Steel Anti-Dumping Duties
Using anti-dumping measures to restrict Chinese steel exports will not provide a lasting solution to growing trade tensions in the sector, which is suffering from overcapacity on a global scale, China’s commerce ministry said on Wednesday.
Reuters reported that the Chinese steel sector sees the foreign steel market as a lifeline, with historically low prices allowing them to boost exports by as much as 26.5% in the first eight months of this year.