Jiangxi Copper and JFE plunge as credit losses may slow demand

Bloomberg reported that China's second biggest copper smelter Jiangxi Copper Co plunged the most in seven months, leading declines among Asian commodity producers, as the bankruptcy of Lehman Brothers Holdings Inc deepened concern credit losses will slow the global economy.

As per report Jiangxi Copper fell as much as 14.3% the biggest decline since January 23rd to HKD 7.63 in Hong Kong trading. The stock traded at HKD 7.99 at 11:11 AM local time. JFE Holdings Inc Japan's second largest steelmaker dropped 8.1% to JPY 3,880 on the Tokyo Stock Exchange.

Mr Li Jingyuan an analyst at Haifu Futures Co in Shanghai said that ¡°We are going to see a lot of panic selling in the days ahead as what's happened in the US is a shock to the whole financial system. Base metals are not going to be spared from this bout of liquidation as investors seek to hold onto cash.''

Copper for December delivery on the Shanghai Futures Exchange slipped as much as 4.2% to CNY 53,350 per tonne, the lowest for a most active contract since November 2007. The contract traded at CNY 53,420 at 11:24 AM Singapore time.

Aluminum Corp of China Ltd the country's biggest producer of the metal and known as Chalco fell 8.9% to HKD 5.02 in Hong Kong trading at 11:16 AM local time. Hidili Industry International Development Co southwestern China's largest maker of coking coal dropped 12% to HKD 4.70.

Hyundai Steel Co., South Korea's second-largest steelmaker, declined 6.8 percent to KRW 53,100 in Seoul at 12:18 PM local time.

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