IRON ORE TRADING NEW PLATFORM BY CHINA
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Another new member is being introduced in the family of commodity trading but with a different style. Surprised to read which new item is being introduced. China is way ahead of thinking and investing new tools of investments in the financial market. Earlier US used to be the leader in bring up new financial tools or investment products for the financial streets. China has taken up the crown and now has com up with Iron Ore trading platform. Yes Iron ore the mother raw material for steel is now on the trading platform. Financial players and banks must be having mouth watering feeling hearing this new trading commodity. But there is a bad news for those mouth watering feelings.
Glimpses of the New Trading Platform of Iron Ore:
- The China Beijing International Mining Exchange (CBMX) will launch its iron ore index and an online physical trading platform in December.
- The price index will be calculated based on the actual trading prices at domestic and foreign ports.
- Major shareholders of the platform are CBMX, Aluminum Corp of China and China Everbright Group.
- The trading platform is designed to serve international and Chinese iron ore producers, business traders and steel companies.
- The platform will post the prices for successful trades online without identifying buyers or sellers - a decision intended to improve the accuracy and reliability of price statistics.
The new platform will help China gain more of a say in global iron ore pricing. Moreover as price formation will be based on buyers, sellers and actual demand, China can gain more influence in the world iron ore market as the biggest iron ore importer in the world..Keeping financial and bank players outside of the trading platform will protect from speculation and prices will be controlled based upon real demand and usage among the industry users of the raw material. All can be said that iron ore prices will be getting a huge coverage from the speculators despite of keeping them outside of the platform. It will be very interesting to watch how the international price will be helpful to other countries through this trading platform.
Category : International Business | Comments : 0 | Hits : 486
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