Vale joins iron ore exchange
By Richard Fu |
April 18, 2012, Wednesday
|
Print Edition
Print Edition
CHINA'S new spot iron ore trading exchange yesterday signed up Brazilian miner Vale as its founding member, the second of the big-three iron ore suppliers to join, as it aims to cement China's influence on the prices of the steelmaking ingredient.
Vale, the world's largest iron ore exporter, officially joined the China Beijing International Mining Exchange (CBMX) at a signing ceremony in Qingdao yesterday. Vale's agreement leaves Australia's BHP Billiton as the only one of the world's top three iron ore suppliers that hasn't joined the CBMX. Australia's largest ore producer Rio Tinto signed up last month.
The CBMX, which will officially start operation in May, is backed by major Chinese steel mills and traders and designed to boost China's influence on pricing of iron ore, of which the country is the largest buyer.
BHP, which backs a similar trading exchange, the globalORE, in Singapore, has said it's positively studying participation and is "in principle supportive of any platform that supports market transparency and liquidity."
The CBMX has said it will focus on physical trading and won't offer iron ore trading derivatives such as swaps and futures as it aims to reflect prices based on actual demand and supply.
The big-three suppliers control the majority of the world's sea-borne iron ore trade.
Vale, the world's largest iron ore exporter, officially joined the China Beijing International Mining Exchange (CBMX) at a signing ceremony in Qingdao yesterday. Vale's agreement leaves Australia's BHP Billiton as the only one of the world's top three iron ore suppliers that hasn't joined the CBMX. Australia's largest ore producer Rio Tinto signed up last month.
The CBMX, which will officially start operation in May, is backed by major Chinese steel mills and traders and designed to boost China's influence on pricing of iron ore, of which the country is the largest buyer.
BHP, which backs a similar trading exchange, the globalORE, in Singapore, has said it's positively studying participation and is "in principle supportive of any platform that supports market transparency and liquidity."
The CBMX has said it will focus on physical trading and won't offer iron ore trading derivatives such as swaps and futures as it aims to reflect prices based on actual demand and supply.
The big-three suppliers control the majority of the world's sea-borne iron ore trade.
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