Metals And Mining Stocks Booming

Metals and mining stocks surged on Tuesday, partly due to encouraging news out of China that should support commodity prices.

China expects to lay off nearly 2 million workers in the coal and steel industries, representing around 15 percent of the total workforce. The country's actions are part of government initiatives to reduce industrial overcapacity amid slowing economic growth.

Fortune noted that China's industry is "suffering from excess" and has already slashed its coal production by 560 million tons over the past five years. The country also pledged to slash crude steel production capacity by 100 to 150 million tons over the next five years.

Related Link: 3 Underground Miners Flying Under The Radar

Shares of ArcelorMittal SA (ADR) MT outperformed many of its commodity-related peers and were higher by more than 7 percent after 90 minutes of trading. Shares of BHP Billiton Limited (ADR) BHP and Rio Tinto plc (ADR) RIO were each higher by more than 2 percent.

DRDGOLD Ltd. (ADR) DRD also saw a boost as its shares were higher by more than 3 percent.