"Ghost" steel proves to be a headache in China

Chinese banks and companies looking to seize steel pledged as collateral by firms that have defaulted on loans are making an uncomfortable discovery: the metal was never in the warehouses in the first place.

China’s demand has faltered with the slowing economy, pushing steel prices to a three-year low and making it tough for mills and traders to keep up with payments on the US$400 billion of debt they racked up during years of double-digit growth.

via Business feed http://www.scmp.com/business/economy/article/1039080/ghost-steel-proves-be-headache-china