China's commodity futures markets are again surging, but while the frenzy earlier this year was driven largely by speculation, this rally has roots in fundamentals, analysts say.

Continuing its extraordinary rally this year, coking coal futures traded on the Dalian Commodity Exchange hit their 10 per cent limit on Monday, which pushed the spot price more than 7 per her higher overnight to $US289.30 ($375.55) a tonne. The price is now closing in on its 2011 boom time highs, having risen from just $US73.40 a tonne in November last year.