Fears over China slowdown hit commodities hedging

Undermining commodities hedging

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Metals hedging has never been so unfashionable. Years of rising commodity prices have seen hedging volumes plummet, and mining firms say they have no plans to change course – that’s despite a surge in volatility in the second half of 2011 and less certainty about economic prospects for China, the ultimate consumer for around 40% of the world’s supply of some base metals.

“There is no inclination to change our current policy towards gold hedging,” says a spokesperson from South African mining firm

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