A total of 242,000 tonnes of iron ore were traded on the first day of business on China’s first physical iron ore trading platform, China Beijing Mining Exchange (CBMX) said in a press release.
The trading platform already counts with the major producers of the commodity BHP Billiton (NYSE:RIO), Vale (NYSE:VALE), Rio Tinto (NYSE:RIO) as members.
Combined BHP, Vale and Rio Tinto control nearly 70% of the 1 billion tonne annual iron ore seaborne trade.
The opening ceremony , held this morning, was presided over by Yang Zhiqiang, the deputy secretary general of Beijing Municipal People’s Government.
The Beijing platform is backed by 26 Chinese steel mills and traders, including Baosteel, Wuhan Iron and Steel, China Minmetals and Sinosteel. Up to this morning it counts with 138 members.
(Photo: Opening Ceremony of China Beijing Mining Exchange, courtesy of CBMX)
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Operation
What kind of effect will this trading platform have on the domestic price of Chinese iron ore provided to steel mills?