China's industry participants and financial institutions should study building up a domestic iron ore futures market as part of the effort to adapt to the new quarterly pricing mechanism for the raw material, Feng Guiquan, vice president of China Minmetals Corp., said Monday.
China
's
industry participants and financial institutions should study building up a
domestic iron ore futures market as part of the effort to adapt to the new
quarterly pricing mechanism for the raw material, Feng Guiquan, vice president
of China Minmetals Corp., said Monday.
The world's three biggest iron ore miners Rio Tinto Ltd. (RTP), BHP Billiton
Ltd. (BHP) and Brazil's Vale S.A. (VALE) have abandoned the old annual iron ore
pricing system and started using more flexible index-based pricing systems from
the second quarter.
In
China
,
while no official changes on the pricing system have been announced, the local
steel industry has widely started using the Platts Index-based system, which
sets quarterly iron ore prices based on the average iron ore prices of the
previous quarter.
China
is
the world's largest importer of iron ore.
Feng said while the index pricing system may create more room for manipulation
by global mining giants and add uncertainties on
China
's
iron ore imports, Chinese firms need to adapt to the trend and actively
participate in setting new pricing rules.
He also said steelmakers may find it harder to make profit from importing iron
ore because the new system is likely to cause spot prices to fall below index
prices more often than before.
Διαβάστε ακόμα
Τρι, 24 Σεπτεμβρίου 2024 - 19:58
Τρι, 24 Σεπτεμβρίου 2024 - 19:54
Τετ, 18 Σεπτεμβρίου 2024 - 18:32
Τετ, 18 Σεπτεμβρίου 2024 - 18:27
Τρι, 17 Σεπτεμβρίου 2024 - 20:01