China’s commodity prices tumble after planner mulls coal intervention – Reuters

China’s commodity prices tumble after planner mulls coal intervention – Reuters

BEIJING, Oct 20 (Reuters) - China's commodities markets tumbled on Wednesday, led by sharp falls in thermal coal prices, after the state planner said it was considering intervention to cool record prices of the fuel that is vital to power the world's second biggest economy.

The slide in China had a knock-on effect in global markets, where prices of base metals used in manufacturing and construction, such as copper, aluminium and zinc, also dipped. The benchmark oil price was also lower.

But global commodity prices remain elevated, so any easing may offer only temporary respite to central banks fretting about inflation, as China and other major economies suck in fuel and other commodities amid a rebound from a pandemic-induced slump.