Not only were iron ore futures under pressure overnight but copper, zinc, lead and tin futures were all smoked too.
Front-month futures on the London metals exchange were hammered. Copper was down 4.4% while zinc, tin and lead lost 4.3%, 3.2% and 2.4% respectively.
The falls overnight are endemic of the trend seen over the past 12 months, displayed in the chart below.
Over the past year tin has slumped 38.7%, while copper, lead and zinc are off 25.2%, 21.1% and 15.8% respectively.
The stronger US dollar has played a role in the continued slide but it is no coincidence that the accelerated falls of late have corresponded with the sharp decline seen in China’s stock market.
Clearly there are concerns about where the Chinese economy is heading.