Fear of Glut Grips Commodities as Xi Shifts China Economic Focus

Concern that China consumption may slow derails metals rally
Inventories of soybean, wheat increase; U.S. oil supply gains

Soybeans stand in a field in Princeton, Illinois, U.S., on Friday, Sept. 29, 2017. Soybean futures for November delivery rose 0.1% a bushel on the Chicago Board of Trade after falling as much as 0.5%, the lowest since September 13.Photographer: Daniel Acker/Bloomberg

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By Heesu Lee and Luzi-Ann Javier

November 14, 2017 at 8:19 PM UTC

Updated on

November 15, 2017 at 2:04 PM UTC

This article is for subscribers only.

A slowdown in the world’s biggest consumer of most commodities is reviving fears over a glut in raw materials.

The Bloomberg Commodity Index extended declines after sliding the most in six months on Tuesday. Futures in China also plunged in overnight trading. Concern is increasing that demand will weaken as the world’s second-biggest economy dials back amid a pledge by President Xi Jinping to focus on the quality of expansion rather than the pace of it. Nickel, iron ore and oil all dropped, and shares of resources companies slipped.