by John Galt
May 20, 2012 22:50 ET
As America parties, the world burns.
Unfortunately for some futures contract holders and those who think they can sell anything to the, ahem, “COMMUNIST” Chinese government, er, companies, this rude awakening has hit them in the face with a two by four:
China buyers defer raw material cargos
(click on the link to read the story in full- Subscription required)
In this story from the UK’s Financial Times, the story by Javier Blas in Singapore and Jack Farchy in the London bureau hits a massive strike of reminiscent terror with this extract:
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.”
A senior executive at another large trading house also confirmed there had been defaults and deferrals in both thermal coal and iron ore.
Oops. Unfortunately for American and especially European traders we have not seen activity or actions like this since way, way, way, way, back in history.
Well, 2008 to be exact.
Have a nice flashback day!
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