SGX, CBMX enter pact to develop iron ore markets

The Singapore Exchange (SGX) and China Beijing International Mining Exchange (CBMX) have agreed to cooperate in the development of Chinese and international iron ore markets.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

It is a first pact between the Chinese spot iron ore trading platform and an international derivatives clearing house.

Under the memorandum of understanding, both exchanges will jointly explore areas of cooperation including “product development, market development and information sharing”, according to an SGX statement on Tuesday May 7.

“Collaboration on product development is still in the early stages, but we could start with information sharing and the expansion of customer base,” a source with CBMX said.

“CBMX and SGX will also explore a medium-term roadmap towards improvement of interaction and risk transfer between the spot and derivatives markets,” SGX said.

“As the only iron ore spot trading platform in China, we hope that through cooperation with SGX, we can promote the use of both the spot and derivatives platforms as trading and risk-management tools. This will help iron ore market participants to achieve effective and efficient interaction between the spot and financial derivatives markets,” CBMX president Dong Chaobin was quoted as saying in the SGX statement.

SGX clears more than 90% of the world’s iron ore swaps, the Singaporean exchange said.

CBMX operates China’s first spot iron ore trading platform, which it jointly initiated with China Iron & Steel Assn and China Chamber of Commerce of Metals Minerals and Chemicals Importers and Exporters (CCCMC) and launched in May 2012

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed