Commodity Rebound Evaporates as Slowing Demand Spells More Gluts
- Longest price slump in more than a year erases optimism of ’16
- Macquarie see more raw-material weakness ahead as China slows
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So much for the commodity recovery.
After a 2016 rally that ended five straight years of declines, prices of everything from crude oil and zinc to sugar and soybeans are once again mired in slumps. The outlook for industrial materials like iron ore and coal may get even worse, with slowing economic growth in China -- the world’s top consumer -- compounding global surpluses. The Bloomberg Commodity Index has dropped for three straight months, the longest decline in more than a year.