Australia-based mining giant Rio Tinto has announced that it has become a member of China's new iron ore spot trading platform which was launched in January this year with the backing of the China Iron and Steel Association (CISA). The trading platform is operated by China Beijing Metals Exchange (CBMX).
Rio Tinto stated that a signing ceremony was held in Singapore on Friday, March 30, between senior officials of CBMX and Rio Tinto Iron Ore Asia, which markets iron ore on behalf of Rio Tinto to its Asian customers. Last week, Australian iron ore miner Fortescue Metals Group (Fortescue) announced that it had officially joined the trading platform.
Rio Tinto Iron Ore Asia president Alan Smith said, "We welcome the development of CBMX as it gives us a new option for selling any available tons to China, over and above those already contracted."
China is the world's largest iron ore importer, with its import volume accounting for 60 percent of the global iron ore trade. The participation of the biggest iron ore miners is expected to enhance the Chinese iron ore spot trading platform's influence on prices in the raw material market.