Slump in commodity prices may be good news for much of the world

Paris

A COLLAPSE in commodity prices prompted by a slowdown in the world's most voracious consumer, China, has rocked financial markets and sent Russia, Brazil and even Canada into recession.

But for much of the world, the crisis may in fact be good news. China accounts for 40-50 per cent of the entire world's demand for commodities, according to a review of the price slump by credit rating agency Standard & Poor's. So as the world's second largest economy tries to shift from an investment-led model that hoovers up commodities towards one of slower, consumer-led growth, it has prompted a dizzying decline in prices.