The rout in commodities has claimed a British victim in the form of Caparo, a UK steel firm.
Caparo is set to go into administration, according to reports from Press Association, with the loss of around 1,800 jobs.
Nick Dakin, Labour MP in Scunthorpe, blamed intense competition from China, in an interview with BBC News.
The loss of industrial competitiveness is fast becoming a political issue.
Jeremy Corbyn, the Labour leader, questioned Prime Minister David Cameron over whether he would raise the issue of cheap Chinese steel “flooding the market” with the Chinese president during his visit to the UK this week.
The fall of Caparo comes a week after the closure of the 98-year-old Redcar steelworks in the North East at the expense of 2,200 jobs.
Falling industrial demand in emerging markets, especially China, has sent commodities prices fall through the floor and made it harder for firms like Caparo to turn a profit.
Here’s how Bloomberg’s Commodities Index has performed this year:
Combine falling demand with Chinese competition and a strong pound, which makes steel exports relatively more expensive, and you have a recipe for disaster for UK steel firms.