| It seems everyone knows the world is flooded with crude oil, but black gold is far from the only commodity that is saddled with a global glut. It’s the downside of the commodity supercycle. On the way up, ravenous demand led by China sent prices of everything from crude to soybeans to iron ore soaring. Producers responded in classic supply-demand fashion: Churning out more to meet demand.
But China’s economy has slowed and global demand has weakened, leaving many commodities grossly oversupplied. And while there’s a lot to the old saying that the “best cure for low prices is low prices,” demand has been slow to respond. China’s economy is slowing and global manufacturing is in less than stellar shape...............................................Full Article: Source
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