Wednesday, December 5, 2012

Trade volume on China's iron ore platform CBMX to hit 10 mil mt in 2013: CISA

The volume of iron ore traded on the China Beijing International Mining Exchange, or CBMX, is expected to reach 10 million mt in 2013 as more Chinese steelmakers are planning to trade cargoes on the electronic platform, China Steel Industry Association said Friday.

CBMX, backed by CISA, was launched May 8 in a bid to assert China's say in determining pricing. The country is the world's largest buyer of iron ore, importing 56.43 million mt in October, up 13% year on year.

Forty two iron ore cargoes were traded on the CBMX over May 8-November 20, with a total volume of 5.29 million mt.

CISA said that as the CBMX platform gains momentum, more member mills were planning to scale back back their long term contractual volumes with miners and instead trade more on the CBMX platform next year.

"Baosteel has taken the lead by stating it is planning to put 10-15% of its trading ore volume on the CBMX platform next year," said CISA vice president Wang Xiaoqi.

The most recent trade settled on CBMX Friday was a 170,000 mt parcel of 57.5%-Fe Australian Special fines at $110/dmt CFR China, according to a trader with access to the platform.

The platform currently has 191 registered members.