Latest Signs of Economic Slowdown in China

choi

Javier blas in singapore and Jack Farchy in London, China Buyers Defer Raw Naterial Cargos. Financial times, May 21, 2012 9front page).
http://www.cnbc.com/id/47498211

Quote:

(a) "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 deferals and defaults have only emerged in the past few days, traders said, and have contributed to a drop in iron ore and coal prices.

(b) "Other indicators followed by Chinese policy makers, including electricity consumption, rail cargo volumes and disbursement of bank loans, point to a sharper slowdown [than soft landing], suggesting the risk of a hard landing.

"Soft commodities like soyabeans and cotton have also seen chinese customers default in the past two weeks, a trader at a third tradig house said.

"hightlighting a 'worsening weakness in consumer spending inside China, Kim Youngha, the head of Samsung's China operations, said he expected the market for technology goods to grow 7 per cent this year, down from 10 per cent ;ast year.

My comment:
(a) There is no need to read the rest.
(b) Uses of Coal. World Coal Association, undated
http://www.worldcoal.org/coal/uses-of-coal/
("Different types of coal have different uses. Steam coal - also known as thermal coal - is mainly used in power generation. Coking coal - also known as metallurgical coal - is mainly used in steel production")
(c) soft commodity (n):
"FINANCE, STOCK MARKET a commodity product that is a crop, such as sugar or coffee, rather than one such as oil or coal. COMPARE hard commodity"
Cambridge dictionaries Online
http://dictionary.cambridge.org/ ... lish/soft-commodity