Metals, energy lead downturn in commodities as trade war intensifies

The fresh round of the US-China trade spat, and its expansion by America to several other nations has hit industrial commodities the most. US had imposed hefty duties on Chinese imports, raising fears of an economic slowdown. China’s subsequent response to the US move has only worsened the scene.

Commodities have been falling since the beginning of the current financial year, but the trade war exacerbated the sharp decline in prices May onwards. Most commodities are down 5-15 per cent, with copper and zinc having shed over 10 per cent, and crude oil and thermal coal down more than 13 per cent.