A canary in the coalmine: Commodities sound warning on global growth

Commodities warning on global growth

Annabelle Williams analyses the supply/demand dynamics of five commodities and what this could mean for investors, and asks whether prices will rebound this year.

Earlier this month, warning lights were flashing as the Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities and is often used as a global growth barometer, fell to record lows. The index dropped 13 points, or 2.35%, to 540 points, marking an all-time low since data was first made available in January 1985. Its fall was blamed on slowing global industrial activity, especially in China which is the world's top importer of commodities. The International Monetary Fund (IMF) also revised and lowered its forecasts for global growth last mo...