Glencore, one of London’s giant mining companies, was not spared from the same issues facing other miners: the prolonged fall in global metals prices caused partly by a slowdown in China. China is the world’s biggest consumer of metals.

Although the company has recovered about 10 percent from its 30 percent slump on Monday, investors have already sold off their bonds in Glencore with the fear of the current financial situation and debt burden. However, Citigroup, an investment bank, said that Glencore’s shares are still considered a “buy” and that the company can even consider becoming private. Traders, however, are wary of buying into commodity stocks.

The rising output following heavy investment in new assets while prices were still high have contributed to the huge fall of energy and commodity prices. This, along with the dwindling demand in Asia, particularly from China which is experiencing its slowest growth pace in decades, contributed to the already fragile economic situation.

Australia was not spared as well as the country’s energy shares also fell. Santos, Origin Energy and Karoon Gas lost around a tenth of their stock market value, according to Reuters.

The crisis has also extended to the shipping sector. On Tuesday, Japanese company Daiichi Chuo Kisen Kaisha filed for bankruptcy. The company suffered four straight annual losses. As of end-March, the company had liabilities amounting to around US$900 million (AU$1.2million) as result of the decrease in China’s demand for iron ore and coal. At present the company’s market value lies at US$96 million (AU$126 million).

Even the Australian dollar suffered the effects as it is closely linked to commodity exports such as iron ore, coal, oil and natural gas. The Australian dollar lost more than a quarter of its value since the current oil price rout began.

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