08.01.2016 - Base metals plunge on China worry
Copper fell over 3 per cent on the London Metal Exchange (LME) after China’s composite index slumped 7 per cent on Thursday. Base metals have not recovered after China announced its currency devaluation in August 2015 as the world’s largest consumer of industrial commodities began to slow down. Nickel has plunged 22 per cent on the LME and zinc, copper and aluminium have declined 19 per cent, 11 per cent and 6 per cent, respectively. On Thursday base metals prices declined by up to 1 per cent on fresh turmoil in the Chinese market. “The ongoing fall in base metals’ prices can be attributed to the fall in the Chinese currency and deflation in the commodities market. Prices of raw materials have not declined as much as finished products, resulting in a stagnating cost of production,” said an analyst with a leading foreign brokerage house...............................................Full Article: Source
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