Why are commodity prices and commodity stocks falling sharply in last few days with Tata Steel and JSW Steel having falling 12-15%?

It started with the China story, and it is still the China story in action. China is currently stepping up its fight against rising commodities prices to protect its own interests. Domestically, the Chinese government has already warned speculators with severe punishment for indulging in excessive speculation in commodity futures.

This caution has led to prices of steel, copper and iron ore coming under pressure as which led to the shar fall in metal stocks across the world including India. Some analysts believe there is only so much control that China can exercise on global commodity prices. However, they miss the point that China still controls the demand levers and that matters a lot.