Metals markets have been battered by concerns over an escalation in the U.S.-China trade war. Goldman Sachs analysts said on Tuesday there was room for further losses, even though metals looked oversold.
To make matters worse, the fall was accelerated by a sharp drop in steel futures on market speculation that China would review its production curbs, a suggestion that was later denied.
The Bloomberg Industrial Metals Subindex fell as much as 1.8 percent, reaching the lowest level since July 2017. Zinc led the decline on Tuesday after speculators cut their net bullish bets to a record low, while copper — which in August experienced its worst month in two years — extended its fall amid concern that an escalating trade war will erode demand.