Commodity Carnage Crushes Trumpflation Hopes: "Everyone's Nervous The Bottom Is Falling Out"
Another night of ugliness in Asia as the 'froth' is blasted out of the exuberant hot-money-chased commodity markets. Chinese steel and iron ore futures tumbled on Wednesday to the lowest prices in months as market sentiment turned bearish on the demand outlook.
As Reuters reports, China's producer price inflation cooled for the first time in seven months in March, pressured by fears that Chinese steel production is higher than demand, leaving a glut of the metal later this year.
The most active rebar contract on the Shanghai Futures Exchange settled 3.5 percent down at 2,893 yuan ($420), the lowest since Feb. 2....MORE"We're not seeing much interest on the buy side, everyone is nervous that the bottom is falling out," said a commodities trader in Perth, Australia, who closely monitors activity on China's Dalian and Shanghai Futures Exchanges for overseas clients.