Significant falls of China stock market took the commodity prices at multi year low. Apart from the commodity prices, energy sources alike are getting off to a poor start to the new week of trading. Major affected commodities are Copper and Nickel. Copper is trading at a new 6½-year low of below $4,400 per ton, while nickel looks about to record a new multi-year low.

Producer prices in China had decreased by 5.9% for the fifth consecutive month in December and have been down for 46 straight months in total. According to industry sources, the State Reserve Bureau in China bought 150,000 tons of copper cathodes from local copper smelters last Friday to prevent the price from continuing its downswing. But this step is not enough. Until sentiment among this group of investors' shifts, metal prices will continue to face headwind. Metal prices thus profited only briefly from the very strong US labour market data on Friday.