| There’s an interesting conundrum developing in commodity markets. Oversupply of almost all commodities has been factored into commodity prices throughout this year, as has some weakening of China’s economy and therefore demand for the raw materials that have fuelled its growth. Yet despite China’s official GDP growth numbers tracking in line with expectations -- China’s president Xi Jinping reaffirmed his expectation of growth of around 7 per cent this year at the weekend’s G20 summit -- commodity prices have cracked once again.
Over the past month or so there has been another sharp fall in prices across the suite of hard commodities, with iron ore prices now down about 13.5 per cent, copper prices by a similar amount, aluminium trading at its lowest levels for six years and zinc prices, which spiked after Glencore announced it would cut a third from its production, falling back to levels about 4 per cent lower than their levels before that announcement.............................................Full Article: Source
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