The slump in the world's second-largest economy and the biggest metal consumer has been pushing prices of metals to multi-year lows.

Zinc price fell nearer to six-year low and other commodities are hovering at lowest levels since 2010. The drop in Chinese consumption and oversupply situation are main culprits behind price fall. The surge in US dollar also made commodities costlier for buyers of other currencies.

The index at the London Metal Exchange (LME), benchmark for six main commodity contracts, fell 25 percent this year so far.

The rise in US dollar also made commodity prices expensive for buyers holding foreign currencies. The market analysts and traders are looking to the data from the Federal Open Market Committee for more indications and clarity about the future direction of the market.

China president Xi Jinping admits that China is facing considerable downward pressure. "The home price recovery also slowed down in October", he said.

 Metal prices have been under pressure following the drop in Chinese consumption for commodities. The oversupply position in the commodities sector is also another major reason for pressure on prices.  

Zinc three-month delivery contract lost marginally 0.3 percent to $1,543.50 per metric ton on LME. The metal during the intraday trading touched $1,518.50 registering its lowest since July 2009. Lead is also hovering at lowest since 2010 and nickel dropped to 2008 low level after recouping some losses. 

Recent inflation data also puts pressure on metal prices. The monetary easing can't curb economic slowdown. The slowdown in the Chinese economy in the past two decades has been reducing demand and creating oversupply scenario in the global metals market.

Zinc price is in the longest losing streak since July. Europe's largest refined zinc producer Nyrstar NV has decided to stop mining of 400,000 metric tons owing to lower prices.

The commodity market players are waiting for the US Federal Reserve's decision on interest rate in December meeting. Market analysts opine that bleak property prices in the Chinese real estate market further worsened the situation. The rising US dollar is offsetting if any gains take place and pushing the base metals lower.

China zinc producers are suffering from price margin pressure. The continuous drop in metals had impacted zinc producing companies' performance in the second quarter. The zinc producers in the dragon country are left with no option but cut down the production levels.

The Chinese government's energy savings and emission-reduction norms are also putting pressure on zinc producers.

The slump in metal prices is impacting global major mining companies. Glencore Plc stock fell 30 percent. The commodity producer and trader has already slashed production levels in addition to selling some of its assets. The shares recovered over four percent on Wednesday. 

The prices of new homes rose in 27 cities in October. The prices were up in 39 cities in September. According to the National Bureau of Statistics, prices fell in 33 cities in October, when compared with 21 in September. China consumption accounts for 40 percent of global copper and half of aluminum production. Copper price fell 0.6 percent to $4,655.50 a ton and aluminum rose 0.3 percent to $1,478 a ton.