SMX to launch iron ore futures contract on Aug 12

Thursday, 11th August,

 Singapore Mercantile Exchange (SMX) today said it will launch trading for the world’s first iron ore futures contract on a global platform from August 12.

It would be settled based on the Metal Bulletin Iron Ore (MBIO) Index, said SMX, the first pan-Asian multi-product commodity and currency derivatives exchange.

The futures contract would complement Singapore as a major trading centre of iron ore and would be an ideal hedging tool for smaller exporters, traders and importers.

The physical market for iron ore is valued at about $200 billion a year, making it second only to the market for crude oil. 

China alone accounts for more than $100 billion of the iron ore market, with production at 250 million tonne (based on equivalent grade 62% iron) and imports of 619 million tonne.

Metal Bulletin is the leading independent provider of premium information and pricing for the metals industries, and its MBIO index is a good reflection of the seaborne merchant market for sinter fines delivered to China, said SMX.

Source: Press Trust of India / Singapore August 10, 2011