China’s iron ore spot trading platform faces slack transaction activity

The China Beijing International Mining Exchange (CMBX) has stated that as of May 22 just seven transactions have been concluded via the new Chinese iron ore spot trading platform since its launch on May 8. In particular, no transactions were concluded on seven of the 11 business days in the period in question.
 
The CMBX attributed the slackness of transaction activity mainly to the lack of familiarity of the market with the new platform, as well as to the negative impact on the iron ore market of the current sluggishness in the steel industry.
 
The new iron ore spot trading platform was launched with the backing of the CBMX, the China Iron and Steel Association (CISA) and the China Chamber of Commerce for Metals, Mineral and Chemicals Importers and Exporters (CCCMC). The big three global iron ore miners - Vale, Rio Tinto and BHP Billiton - and major Chinese steel producers such as Baosteel, Hebei Steel and WISCO have all joined the new trading platform.