economy - Cooling down hits commodity market


The meeting of the Shanghai Foreign Correspondents Club last night in Zapata's was good for new stories about China's economy. For the first time the commodity trade said it was feeling the effects of the cooling down of the economy. Up to now it had been very hard to see any clear effects.
The for commodity traders regrettable downturn has three reasons, the power cuts, the logistical problems and the problems in getting L/C's (letters of credit) over de past two weeks.
The power cuts because of an ongoing shortage because of the rising temperature has the largest effect, but not getting an L/C is of course also a nuisance.