LONDON (Reuters) - Chinese consumers of thermal coal and iron ore are asking traders to defer cargos and defaulting on their contracts, the Financial Times reported on Monday.
The newspaper cites traders as saying the deferrals and defaults, which have only emerged in the last few days, have contributed to a drop in iron ore and coal prices.
“We have some clients in China asking us this week to defer volumes,” a senior executive with an unnamed global commodities trading house is quoted as saying.
The deferrals are described by the FT as the clearest sign yet of the impact of the country’s economic slowdown on the global raw materials markets.
“China is hand to mouth at the moment,” the unnamed source is quoted as saying.
A second senior executive at another large trading house, cited by the FT, also confirmed there had been defaults and deferrals in both thermal coal and iron ore.
Reporting by Stephen Mangan; Editing by Ed Davies