Chinese steel, iron ore and other base metals also remain under pressure, it said.

“Recent Chinese domestic activity indicators contain worrying signs for commodities,” the ANZ report states. “Growth in industrial production and fixed asset investment both fell year-on-year in October.

“Even more worrying was that steel and electricity production also remained weak in October (down 2.0% and up 0.2% year-on-year respectively).”

Credit conditions also remain soft, with new yuan loans and aggregate financing recording sharp falls in October, according to ANZ.

“This was compounded by the strong US nonfarm payrolls number in November and subsequent hawkish comments by Fed speakers, which significantly raised expectations of a Fed rate rise for December,” ANZ said.

“This has kept the US dollar well bid and put significant downward pressure on spot prices of industrial metals.”