China has launched an online trading platform and price index for iron ore, as it moves to strengthen its pricing power over the sector.
The online platform is provided by the China Beijing International Mining Exchange (CBMX) together with the China Iron & Steel Association and the China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters.
Thirteen major Chinese steel makers, including Baoshan Iron & Steel Group, Anshan Iron and Steel Group Corp, Hebei Iron & Steel Corp and Shougang Group have signed up as members.
Also, 13 Chinese iron ore trading firms have signed up, including China National Minmetal Co. and Sinosteel's trading unit, the industry bodies said at the platform launch today.
"The platform is aimed to fully achieve the price discovery, form a credible pricing mechanism and reduce iron ore price volatility caused by manipulation...," CBMX said in a statement
China has long believed that its status as the world’s largest consumer of iron ore entitles it to more control over pricing.
