This Could Be the Start of Something Fun

Or not.

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.”


6 Responses to “This Could Be the Start of Something Fun”

  1. Mark says:

    Canary in the coal mine?

    Ugg.. Time to get out the “Uh, OH!” stamp… and the red ink pad.

  2. Mr. Bingley says:

    They’ve never been shy about unilaterally “renegotiating” contracts when things go against them.

  3. Gary from Jersey says:

    They’ll never figure out capitalism. Good for us.

  4. Yojimbo says:

    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.

  5. JeffS says:

    Is this another bubble popping?

  6. tree hugging sister says:

    It’s gonna be noisy when it goes…

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