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Chinese buyers for iron ore and coking coal are attempting to defer orders and defaulting on...

Chinese buyers for iron ore and coking coal are attempting to defer orders and defaulting on contracts, according to reports from traders, as the country is filled to the brim with the stuff and the nation's steel mills are cutting output amidst heavy overcapacity. (see also)
Comments (7)
  • TwistTie
    , contributor
    Comments (2477) | Send Message
     
    The Chinese kids will all have crooked teeth if they stop making steel.

     

    There is something going on in China that we don't understand.

     

    Wait a minute, is there anything in China that we understand?

     

    Of course not.

     

    Invest in Taiwanese orthodontists.
    21 May 2012, 10:07 AM Reply Like
  • kitchenboy
    , contributor
    Comments (28) | Send Message
     
    just one more piece suggesting the implosion of the chinese economy
    21 May 2012, 12:54 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (5588) | Send Message
     
    Funny, so the country had record steel production in March, but now you suggest the economy is imploding? Too funny!
    21 May 2012, 03:43 PM Reply Like
  • Sleeperz
    , contributor
    Comments (31) | Send Message
     
    The problem in China is with the high speed trains crashing and the uncovering of corruption, the high speed rail network was derailed.
    No need for as much steel..
    21 May 2012, 01:01 PM Reply Like
  • rasanders22
    , contributor
    Comments (520) | Send Message
     
    China is painting over rust, so to speak. Everything looks fine on the outside, but its rotting away underneath. Google Chinese ghost cities.
    21 May 2012, 01:45 PM Reply Like
  • Sleeperz
    , contributor
    Comments (31) | Send Message
     
    When the Mainland Chinese and their money are rushing to get out of China at any price. You can figure something is wrong there.
    They will spend millions on a house in Vancouver BC that would buy a mansion in the US.
    22 May 2012, 09:11 AM Reply Like
  • Herr Hansa
    , contributor
    Comments (3079) | Send Message
     
    Several Financial Times and other source articles related to this. Certain commodity stockpiles have been created to get around currency pegs in China. Some of this is used as collateral, some is traded, and some is a currency hedge. Recently the Chinese government has hinted at moves to curb that activity. Once the previous trading schemes no longer work, having a stockpile of raw materials is a liability. I would expect commodity prices to decline further in the near term.
    21 May 2012, 04:17 PM Reply Like
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