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30 Ships of Unsold Coal Float Off China's Coast


JEast
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It is my understanding the price and demand are inter-related to supply.  If the demand was high, would one argue much over price?  One can debate if supply creates its own supply, which is if you have a place to store the supply.  If not, the product sits in the warehouse, or on a ship in the ocean.

 

 

Cheers

JEast

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Of course a couple traders get greedy without locking up a supplier and it gets twisted into more then it really is.  If I was China I would make them sit for as long as possible no matter how much the demand is.  These are the same people that will run the price up on you later.  Send a message now.

 

One could argue that food is a scarce resouce but China send back rice all the time to the US b/c it doesn't meet a particular standard they are looking for (the rice is still good but not what China is wanting).  Wouldn't be suprised if the 30 boats of coal is something other then what they use according to specs.

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It is my understanding the price and demand are inter-related to supply.  If the demand was high, would one argue much over price?  One can debate if supply creates its own supply, which is if you have a place to store the supply.  If not, the product sits in the warehouse, or on a ship in the ocean.

 

 

Cheers

JEast

 

I get your point, but it appears this was  coal that was brought over on speculation and is stuck now. The Chinese and others are still making contracts for coal at a lower price with suppliers, so the railroads will still be moving as lots of coal is still being used. Might slow down for a short time in a standoff, but as long as it is still being used will have to be moved at sometime.

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