Biggest Metals Market Set for First Trade Drop Since Crisis
- Weakness follows five record years fueled by Chinese demand
- Hedge funds, banks scale back; regulators increase scrutiny
Traders work from the trading floor at the London Metal Exchange.
Photographer: Matthew Lloyd/BloombergThis article is for subscribers only.
The biggest market for metals is going into reverse for the first time since the 2008-09 financial crisis as slowing Chinese demand deters investors.
The London Metal Exchange is set for weaker volumes this year as hedge funds and banks have scaled back their commodities business, regulators increase scrutiny of the market and the bourse charges higher transaction fees.