Beijing iron exchange handled only 8 transactions in its first 3 weeks

It has been a slow start for China’s first physical iron ore trading platform which was launched with the idea that it would give China greater influence on the price of the commodity.

From its opening on May 8, the China Beijing Mining Exchange (CBMX) has handled only 8 transactions with 956,500 tonnes of ore changing hands according to China Daily. That figure includes the 242,000 tonnes traded on the first day of business.

The value of the deals amounted to $130.85 million, of which a small portion – 21.6 million yuan or $3.4 million – was transacted in the local currency, the yuan.

The major producers of the commodity BHP Billiton, Vale and Rio Tinto – which combined control nearly 70% of the 1 billion tonne annual iron ore seaborne trade – are members as are 26 Chinese steel mills and traders, including Baosteel, Wuhan Iron and Steel, China Minmetals and Sinosteel.

The import price of 62% iron ore fines at China’s Tianjin port was $130.50 at tonne on Friday, down more than 10% since the start of May.