Chinese commodity futures markets experienced a broad crash Monday morning and a possible buyer for Tata Steel U.K. met with bankers Friday.
Chinese Commodity Futures Markets Crash
Chinese commodities futures fell almost across the board on Monday, led by 6% drops in steel and iron ore futures, as worries about waning demand in the world’s top consumer of most industrial materials extended last week’s slide.
Speculative funds had rushed into China’s commodities futures last month, betting that the country’s economy was bottoming out, alarming exchanges and regulators who feared a new bubble was forming as volumes and prices soared.
Excalibur Meeting With Banks Over Possible Tata U.K. Purchase
Excalibur Steel, the management buyout group interested in purchasing Tata Steel‘s assets in Britain, met with bankers on Friday to seek financing for the deal. Tata U.K. executive Stuart Wilkie, who leads the group, said that it will hold talks with one British and three international banks to present its proposal to save the loss-making business from the threat of closure.