The price declines in many commodities have recently accelerated.
Gold is trading at its lowest level in over five years. Copper and aluminum prices have slid to six-year lows. Nickel and tin have also seen significant price falls.
The price of crude oil is down by more than half since June 2014.
Dairy prices have recently hit six-year lows.
The list of cheaper commodities could go on.
A July 27 EconoTimes article says China’s slowing economy is the reason for the downturn in the price of commodities:
... China is the culprit behind this major commodity rout.
Before the financial crisis, ships loaded with commodities were heading to China, as the giant was consuming more than half of global production in some.
In 2012, China was consuming about more than 50% of global iron ore, Aluminum and Nickel. Copper and Zinc consumption was about 50% of global production.
This has led to some serious investments and capacity increase in commodity segment, which is leading to today's excess capacity.
China was able to maintain some growth prospects even after the crisis till 2011/13, after which its economy have started to crumble at sharp pace.
It now turns out that in 2015, Chinese economic activities have slowed to multi decade low and indicators are pointing to even lower.
You can read the entire article by following the link below: http://www.econotimes.com/China-%E2%80%93-Center-of-global-deflation-68437