Alcoa (NYSE:AA), Freeport (NYSE:FCX), Southern Copper (NYSE:SCCO) Drop on China Worries

Commodity equities are taking a big hit from speculation swirling around the high probability that China may increase interest rates to battle inflation, hitting share prices of mining companies like Alcoa (NYSE:AA), Freeport (NYSE:FCX) and Southern Copper (NYSE:SCCO) hard.

Alcoa weighed heavily on the down, as it dropped close to three percent in Tuesday trading.

China's consumer price index increased to 4.4 percent, much higher than expected, generating the concern over the middle kingdom raising interest rates.

That was also exacerbated by South Korea increasing interest rates by 25 basis points to 2.50.

Alcoa closed Tuesday at $13.03, losing $0.37, or 2.76 percent. Southern Copper was down to $42.43, falling $1.27, or 2.91 percent. Freeport plummeted to $97.61, plunging by $4.39, or 4.30 percent, as a number of the commodities the produce were under pressure, including gold and copper.