SGX’s iron ore futures contract sees no trades on first day

The Singapore Exchange (SGX)’s iron ore futures contract saw no trades recorded on its first day of trading on Monday April 8.

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

Several brokers in Singapore told Steel First they have not seen clients ask about the contract.

“I think it’s less to do with it being the first day of trading and more to do with the fact that there is little, if any, interest in the product,” one of the brokers said.

The SGX did not respond to emails and calls for comments at the time of writing.

The exchange launched the contract in a move to retain US participants as the country tightens up its over-the-counter (OTC) trading rules.

US participants make up around 10% of the OTC iron ore market.

The contract size is for 100 tonnes, compared with 500 tonnes for iron ore swaps cleared on the exchange.

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.