Mining firm Glencore's 30 per cent slide in London on Monday caused commodity firms to fall across the world. Its shares fell 27.5 per cent in Hong Kong on Tuesday.
Glencore is a leading integrated commodity producer and marketer, operating worldwide. Its business covers more than 90 commodities, encompassing metals and minerals, energy products, and agricultural products, as well as related marketing and logistics activities. High debt and falling global commodity prices have affected the company.
Commodity prices have fallen in the past few months owing to the economic slowdown in China, the biggest consumer of commodities. China's currency devaluation has also hurt investors’ sentiment.
Shares of Indian commodities' companies, including Vedanta, Tata Steel, and Hindalco, fell sharply on Tuesday, despite a rally in the broader benchmark indices.
Tata Steel slipped four per cent to Rs 201, National Aluminium Company slid four per cent to Rs 35, and Hindalco climbed down 3.5 per cent to Rs 68 on Tuesday.
Shares of Australian miners BHP Billiton and Rio Tinto Group slumped as well, with BHP falling to a seven-year low after losing 30 per cent of its share price overnight. China's Cnooc and PetroChina slid to lowest intra-day levels since March 2009.
China is the world's biggest consumer of metals, accounting for nearly half of the world demand.
Recent data show that profits of Chinese industrial companies fell nine per cent in August from a year earlier.
Metal stocks have been under pressure in the past few days, amid weakness in Asian stock indices and depressed commodity prices the world over.
Shares of domestic commodity and metal companies including Vedanta, Tata Steel and Hindalco are down about 50 per cent from their 2015 highs.