This Could Be the Start of Something Fun
China Buyers Defer Raw Material Cargos
Chinese consumers of thermal coal and iron ore are asking traders to defer cargos and – in some cases – defaulting on their contracts, in the clearest sign yet of the impact of the country’s economic slowdown on the global raw materials markets.
The deferrals and defaults have only emerged in the last few days, traders said, and have contributed to a drop in iron ore and coal prices.
“We have some clients in China asking us this week to defer volumes,” said a senior executive with a global commodities trading house, who warned that consumers were cautious.
“China is hand to mouth at the moment.”
Joy.
Biz, World Stuff | tree hugging sister | 
May 21, 2012 1:36 am
Subscribe
Canary in the coal mine?
Ugg.. Time to get out the “Uh, OH!” stamp… and the red ink pad.
They’ve never been shy about unilaterally “renegotiating” contracts when things go against them.
They’ll never figure out capitalism. Good for us.
There is just something about “unilaterally” and “renegotiating” being in such close proximity that gets me to pnderin’. When I figure this out, I’ll get back to ya.
Is this another bubble popping?
It’s gonna be noisy when it goes…