Chinese Steelmakers Shiver, Indian Miners Catch Flu

Caution seeps throughout the global financial system, spreading crisis: In the West, homeowners struggle to pay mortgages, especially those of the high-rate, sub-prime variety; armed with less credit and confidence down, consumers in developed nations delay purchases of new cars and appliances. That has slowed steelmaking in China, which in turn has put a stop to purchases of iron ore from India. About 90 percent of India’s exports of iron ore went to China. At the same time, India imposed an export duty on those iron ore shipments, and prices dropped. Around the globe, people must tighten belts and prepare for less spending. – YaleGlobal