The latest indication that the Chinese economy is slowing down is reported in BusinessInsider regarding the cancellation of commodity orders. There has been a marked decrease in recent times in commodity prices but with huge stockpiles, the Chinese have begun deferring or canceling orders lately.

The evidence of a China slowdown which is somewhat worse (perhaps much worse) than what the market was expecting continues to pile up.  We have got disastrous macro data for April, more and more companies acknowledging slowdown in the market, pathetic loan growth which brought my speculation that debt deflation is a reality, building up of raw material inventories, and perhaps the acknowledgment from the Premier that perhaps supporting growth is now a higher priority than it was previously.

The latest comes from a report from the Financial Times that Chinese commodities buyers are asking for deferral of delivery of raw materials, or occasionally decide simply to default on the contracts.  Of course, this is not all too surprising if you have seen the level of build-up of iron ore inventory:

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 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.

The article continues with the slowdown of Chinese consumers in the face of austerity.