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Base Metals Sell-Off Continues, With China Freeing Up Supply

COMMODITIES
  • Industrial metals have extended recent weakness, with iron ore falling further and adding an extra 6% to the sell-off. Dalian-listed iron ore futures are now near 40% off the year's best levels, and coming closer to the cycle lows printed mid-August.
  • Heavy selling pressure was present in markets from the off, with reports that China had released a third batch of metals supply from state reserves quickly doing the rounds. China confirmed that 150,000 tons of copper, aluminium and zinc had been released from their strategic supply, with the government vowing to continue to monitor price trends going forward.
  • Oil and precious metals markets trade more or less unchanged, with focus turning to the weekly DoE oil inventories later today. Markets expect headline stockpiles to record a draw of near 3mln barrels in the latest week.

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