Now, it's the turn of mining companies to come out with disastrous numbers. The Chinese mining companies announced bleak results as the weaker prices of raw materials impacted their performance. The prices of iron ore, copper, etc, fell drastically to the lowest in the past six-and-a-half years. The major reason for the fall is fresh bout of fears about Chinese economy growth. 

The year-to-date (YTD) loss of copper is put at 26.4 percent, gold at 9.7 percent, palladium at 33.6 percent, platinum at 28.6 percent and silver at 20 percent. China is a major consumer of global metals market. The economy slowdown impacted real estate and construction sectors. This has further pushed down demand for raw materials pulling down the prices of iron ore, copper, steel and other metals. 

The latest round of turbulent numbers from the mining sector will further impact the global growth, say worried global investors. Chinese manufacturing sector last week announced their numbers and the industrial slowdown caused a severe panic among the global investors. Major mining companies Chilean copper miner Antofagasta and BHP Billiton are scheduled for results announcement this week. Many mining blue chip companies are suffering from the slowdown in China's economy and weaker demand from other nations. 

BHP is the world's largest mining conglomerate is also reeling under pressure. The mining major is likely to post disappointing results, forecast analysts. This weak performance will force the companies to go for cost cutting measures and this would further put pressure on metal prices. 

Mining companies have already slashed their budgets to keep tabs on their costs. Last month, Anglo American slashed 6,000 jobs and is planning to offload assets worth GBP2.5 billion. Another company Rio Tinto early this month announced 43 percent drop in the half yearly profits and is in the process of further cutting costs. 

Another mining group Glencore reported GBP432million loss in half yearly results and its stock already tanked 45 percent this year so far and trading at 158.5p from its high of 530p in 2011. Glencore was on high when copper price touched a record $10,000 a ton. Now, the copper price is at half of this level. The present level of copper was not even seen since 2009. 

Analysts attribute the slump in commodity prices to short selling by hedge funds. Some major funds are also betting big again the market. Holding value for the bleak outlook for the mining sector, BHP's stock fell over 40 percent during the past 12 months. However, the company says that its production level was up nine percent this year so far. 

The manufacturing industry and the construction sector in the world's second largest economy have started slowing down resulting in more pressure on metals consumption.