Commodities destroyed in Asian trade

It’s an ugly day on industrial commodity markets in Asia today with some big falls in crude oil, copper, zinc, and Chinese rebar steel.

At the moment Nymex crude for January delivery is down 2.74% to $40.75 a barrel, Brent crude is down 1.75% to $43.87 a barrel, Copper in US trade has fallen 2% to another six-year low of $2.01 a pound, but it is down 3.74% in Shanghai. Zinc in Shanghai is down 1.03%, and rebar steel on the Shanghai exchange is off 3.35%. Interestingly even against this back drop Gold still can’t find any buyers and is down $7 an ounce to $1071.

The weakness appears based in Chinese exchanges, where the biggest falls are but as the prices also show the price pressure has reverberated around the globe. Today’s selling has also been accompanied by a continued US dollar strength today while the PBOC allowed the USDCNY to set back near the top of the recent, weaker range, at 6.3867.

Trade has had a real “China worry” feel about the move today with Australia’s big miners under pressure as well. BHP is down 2%, Rio is off 1% and commodity currencies like the Australian and New Zealand dollars have been dragged along for the ride lower. The Australian dollar is down 0.88% at 0.7174 while the Kiwi is off 0.81% to 0.6509.

Whether European and US traders take up the cudgel and keep selling across the evening is an open question. But’s traders in the industrial complex are clearly worried in Asia today.

Here is the US copper chart – note the complete collapse over the past two sessions.

Copper Futures Hourly – Finviz.com

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.