Chinese Commodity Carnage Unwinds Entire Bubble – Steel Futures Crash Most Since 2009

Friday, May 13, 2016
By Paul Martin

by Tyler Durden
ZeroHedge.com
05/13/2016

As Reuters reports,

Chinese steel futures were on course for their biggest weekly fall since 2009 on Friday, as a selloff in the country’s commodities showed signs of spreading to other global markets for raw materials such as palm oil and base metals.

Weakening fundamentals along with strong measures by Chinese exchanges to stamp out speculative activity have helped reverse momentum in China’s massive commodity futures markets from bullish to bearish in less than a month.

The deepening losses have started to weigh on global markets elsewhere, in a similar manner to the boom and bust cycle in the country’s stock markets last year.

This is what government-intervention-driven malinvestment-creating unintended consequences look like…

The Rest…HERE

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