CHINA’S once again trying to restrain its commodity traders following a spike in prices from coal to rubber, six months after the government stepped in to deflate a speculative bubble.

    The Shanghai Futures Exchange urged investors to trade rationally and maintain market stability amid an increase in volatility of some contracts. The bourse increased fees for steel and rubber futures Tuesday, while the Zhengzhou Commodity Exchange raised charges for thermal coal for the fourth time in less than three weeks and the Dalian Commodity Exchange hiked transaction fees for coking coal and coke.

    It’s not the first time the nation’s commodity traders have been subdued. The exchanges took similar steps half a year ago when short-term retail investors charged into everything from iron ore to cotton, driving up prices and stoking fears of a bubble. While there hasn’t been the explosion in trading volumes seen across markets in April, the recent surge in coal, coke, rubber and steel has been enough to prompt authorities to take action.

    “The government is compelled to regulate the market again as overplayed speculation in coking coal and coke futures attract liquidity in the country and spread enthusiasm to other products such as rebar and nickel and copper,” said Wei Lai, an analyst at Cofco Futures Ltd.

    Thermal and coking coal futures have hit the highest level since their debut in 2013, while zinc surged to the highest since 2011. Steel rebar, nickel, tin, iron ore and rubber futures also jumped to multi-year highs.

    Commodity trading is also drawing the scrutiny of the National Development and Reform Commission (NDRC), the country’s top planner and price regulator. NDRC officials met with representatives of the Zhengzhou Commodity Exchange yesterday to discuss trading in thermal coal futures and efforts to curb illegal activity. (SD-Agencies)