Market conditions are also being significantly worsened by the involvement of speculative and financial investors in commodities, he added.
Recent volatility in the China’s stock market along with its currency devaluation and slowing growth have resulted in speculative shorting of London Metal Exchange-traded metals, such as copper and nickel.
“The IPO is definitely off [the agenda] based on current prices,” Siani said.
“Why have copper and nickel [prices] fallen so dramatically over the past few weeks? It’s fundamentally a bet on much weaker demand from China over the next few years, made by hedge funds and investors and so on,” he said.
“What’s hammering the price right now is that copper and nickel are very highly traded on the LME by financial investors. I think what’s happening is that a lot of investors are shorting those commodities and betting that the demand scenario will be much uglier than was foreseen...