A silver medal for tin - the best performer, up over 11%.
Zinc was the worst-performing base metal.
Deflationary pressures spell lower prices.
Base metal prices were the worst-performing commodity sector in the second quarter of 2015, and prices continued to slide during Q3.
The overall sector of metals traded on the London Metal Exchange (LME) was down 6.18% for the quarter ending September 30, 2015. Base metal prices stumbled as the Chinese economy deteriorated and the U.S. dollar index rallied by 0.86%. Thus far in 2015, the Chinese have cut interest rates three times in an attempt to stimulate the economy. In July, when Chinese domestic equity prices plunged, the government introduced new rules and regulations to inhibit or ban selling and encourage or demand buying. Even in the face of these new restrictions, equity prices have remained soft.
The Chinese government floated a $1 trillion yuan bond for infrastructure in the nation over the summer. Then, in late August, in a move that came as a shock all over the world, China devalued their currency, the yuan. With all of these moves, the Chinese government hoped to stimulate their domestic economy and the nation's exports to achieve the target growth rate of 7%. The rest of the world has depended on Chinese growth for years now, and a slowdown in that economy has resulted in difficult circumstances around the world.
