Singapore Exchange Confirms China Deal To Develop Iron Ore Market

Singapore Exchange and China Beijing International Mining Exchange have signed a memorandum of understanding to cooperate in the development of both Chinese and international iron ore markets.

The agreement was signed in Singapore at the Singapore Iron Ore Week 2013, between Dong Chaobin, president of CBMX, and Magnus Bocker, CEO of SGX.

CBMX operates the iron ore spot trading platform in China, which was jointly initiated by China Iron and Steel Association and China Chamber of Commerce of Metals Minerals and Chemicals Importers and Exporters. Since its opening on May 8, 2012, more than 13 million metric tonnes of iron ore have reportedly been traded. The trading pattern of the platform and the base price it generates, are gradually gaining market influence.

Under the MOU, both exchanges will jointly explore areas of cooperation including product development, market development and information sharing. CBMX and SGX will also explore a medium-term roadmap towards improvement of interaction and risk-transfer between the spot and derivatives markets.

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