China, the world's second-largest economy and also the world's
largest consumer of iron, in a bid to manipulate the global
pricing of the raw commodity, is set to launch the first iron ore
physical trading platform by yearend.
China Beijing International Mining Exchange (
) will launch its iron index and online physical trading platform
to provide a transparent and accurate pricing data scheme for
domestic and overseas participants, Dong Chaobin, president of
the CBMX, said in China Daily.
"The price index will be calculated based on the actual trading prices at domestic and foreign
ports," Mr Dong said. "The trading
platform is designed to serve international and Chinese iron ore
traders and steel companies."
The platform will enable China have
more say in global iron ore pricing,
said Liang Ruodong, CBMX vice president.
"Many overseas steel makers are interested in the platform and want
to join the system," he said.
Prices of successful online trades will be posted in the
platform without the need to identify buyers or sellers, a move
improve the accuracy and reliability of price statistics.
Mr Dong said the CBMX will provide a
transparent and public channel for iron ore
producers and steel makers to
choose their business partners for trading.
Financial organisations and banks have been discouraged to
participate in the platform to avoid speculations.
Analysts see the new iron index and online physical trading
platform is fairer than the current inquiry system practice used
by most companies and that it would be successful because pricing
will be based on successful online transactions.
As the pricing of the platform will be dictated by iron ore
buyers, sellers and actual posted online, China stands to gain
more being the world's biggest iron ore importer.