Commodity prices are falling because consumer demand (in particular from Chinese firms) is falling. That's a no brainer. But why is global demand so weak?
I don't believe it's as simple as that. The only real weak part of the Chinese economy is the heavy industry sector.
Opex commodities (oil and gas) still experiencing mid single digit y/y demand growth in china -- the drop in price for these commodities definitely stems from continuous supply growth.
Capex commodities (steel, iron, coal) are experiencing the mid single digit demand declines y/y in China. This is coupled by supply growth in iron ore, copper, etc above 10 year trend.
