For the last three (3) decades, China economic boom was unprecedented. Most global economies and companies have focused on China. This year, China's economy is slowing down as unsold goods pile up. Commodity prices from steel to coal are plummeting creating price wars. Those unable to to compete with low prices will just have to stop their operations leading to job losses.
China is a major coal importer. With its economic slowdown, coal industry is facing major shutdowns and job losses. The ultimate losser, the workers.
last month. China is still facing a lot of problems and uncertainties in exports going forward.China’s economic growth forecast in 2012 is 7.7%, which would be the slowest pace in 13 years.
Mining giant BHP Billiton is mothballing more than $30B expansion projects in Australia as new investments in Australia's coal sector would not be profitable according to its CEO. This probably partially attributable to the government new carbon and mining taxes.
Chevron and Shell, two (2) of the world's biggest names in Hydrocarbon, admitted that the $43B Gorgon project cost is escalating. Shell indicated that it could delay its Australian LNG projects worth $US17 billion.
Are these scenarios prelude to another economic meltdown?