China Full-Scale Iron Ore Trading Starts

Chinese physical iron ore trading platform, which established by China Iron and Steel Association (CISA) and other Chinese industry groups, launched commercial operation on Tuesday. Baosteel, Hebei Iron & Steel Group and four global miners including Vale join the platform. China eyes fair and reasonable iron ore pricing for stable development of China industry. The Chinese platform would impact on global iron ore pricing. Japanese integrated steel maker source expects the Chinese platform could control higher iron ore cost.

The platform was established on January 16 by CISA, China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters and China Beijing International Mining Exchange. The test operation started on March 29. The platform holds 138 members. The platform launched the trading by new method under control of government agencies.

Iron ore price jumped under consolidation of world miners and growing demand in China in recent years. Chinese spot import price is currently increasing from US$ 145 per tonne and most of Chinese steel makers posted loss in January-March due to higher iron ore cost. China tries to control the increase of the cost through the trading.