IRON ORE FINES
are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, deep purple, to rusty red. The iron itself is usually found in the form of magnetite (Fe3O4), hematite(Fe2O3), goethite (FeO(OH)), limonite (FeO(OH).n(H2O)) or siderite (FeCO3). Hematite is also known as "natural ore", a name which refers to the early years of mining, when certain hematite ores containing up to 66% iron could be fed directly into iron-making blast furnaces. Iron ore is the raw material used to make pig iron, which is one of the main raw materials to make steel. 98% of the mined iron ore is used to make steel.[1] Indeed, it has been argued that iron ore is "more integral to the global economy than any other commodity, except perhaps oil".Over the last 40 years, iron ore prices have been decided in closed-door negotiations between the small handful of miners and steelmakerswhich dominate both spot and contract markets. Traditionally, the first deal reached between these two groups sets a benchmark to be followed by the rest of the industry.[2]
This benchmark system has however in recent years begun to break down, with participants along both demand and supply chains calling for a shift to short term pricing. Given that most other commodities already have a mature market-based pricing system, it is natural for iron ore to follow suit. Although exchange-cleared iron ore swap contracts have developed over the past few years, to-date no exchange has established a proper futures market for the largely seaborne $88 billion a year iron ore trade.[6] To answer increasing market demands for more transparent pricing, a number of financial exchanges and/or clearing houses around the world have offered iron ore swaps clearing. The CME group, SGX (Singapore Exchange), London Clearing House (LCH.Clearnet), NOS Group and ICEX (Indian Commodities Exchange) all offer cleared swaps based on The Steel Index's (TSI) iron ore transaction data. The CME also offers a Platts based swap, in addition to their TSI swap clearing. The ICE (Intercontinental Exchange) offers a Platts based swap clearing service also. The swaps market has grown quickly, with liquidity clustering around TSI's pricing. [7] By April 2011, over USD$5.5 billion dollars worth of iron ore swaps have been cleared basis TSI prices.
Singapore Mercantile Exchange (SMX) is planning to launch soon an iron ore futures contract, subject to regulatory approval from theMonetary Authority of Singapore, based on the Metal Bulletin Iron Ore Index (MBIOI) which utilizes daily price data from a broad spectrum of industry participants and independent Chinese steel consultancy and data provider Shanghai Steelhome's widespread contact base of steel producers and iron ore traders across China.[8]
This move follows a switch to index-based quarterly pricing by the world's three largest iron ore miners - Vale, Rio Tinto and BHP Billiton - in early 2010, breaking a 40-year tradition of benchmark annual pricing.
Order Processing:
ICPO with all the procedures of the sellers SCO, including ports of destination, soft probe with authorization and BCL/RWA issued by buyers bank, as sellers bank will communicate with buyers bank to verify funds.
After receipt of all information and approved by the seller, seller will issue the Draft contract.
Please check if your buyer will agree with all "terms" and “procedures” without changing any step of the procedures. We do not give any past performance, any documentation, or websites, or registration numbers on the seller.
We can start with amounts of 50,000mt/monthly ~ 500,000mt/monthly ~ 1,000,000 mt/monthly for 12 month contract with expandable roll over option terms of up to 60 months.
are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, deep purple, to rusty red. The iron itself is usually found in the form of magnetite (Fe3O4), hematite(Fe2O3), goethite (FeO(OH)), limonite (FeO(OH).n(H2O)) or siderite (FeCO3). Hematite is also known as "natural ore", a name which refers to the early years of mining, when certain hematite ores containing up to 66% iron could be fed directly into iron-making blast furnaces. Iron ore is the raw material used to make pig iron, which is one of the main raw materials to make steel. 98% of the mined iron ore is used to make steel.[1] Indeed, it has been argued that iron ore is "more integral to the global economy than any other commodity, except perhaps oil".Over the last 40 years, iron ore prices have been decided in closed-door negotiations between the small handful of miners and steelmakerswhich dominate both spot and contract markets. Traditionally, the first deal reached between these two groups sets a benchmark to be followed by the rest of the industry.[2]
This benchmark system has however in recent years begun to break down, with participants along both demand and supply chains calling for a shift to short term pricing. Given that most other commodities already have a mature market-based pricing system, it is natural for iron ore to follow suit. Although exchange-cleared iron ore swap contracts have developed over the past few years, to-date no exchange has established a proper futures market for the largely seaborne $88 billion a year iron ore trade.[6] To answer increasing market demands for more transparent pricing, a number of financial exchanges and/or clearing houses around the world have offered iron ore swaps clearing. The CME group, SGX (Singapore Exchange), London Clearing House (LCH.Clearnet), NOS Group and ICEX (Indian Commodities Exchange) all offer cleared swaps based on The Steel Index's (TSI) iron ore transaction data. The CME also offers a Platts based swap, in addition to their TSI swap clearing. The ICE (Intercontinental Exchange) offers a Platts based swap clearing service also. The swaps market has grown quickly, with liquidity clustering around TSI's pricing. [7] By April 2011, over USD$5.5 billion dollars worth of iron ore swaps have been cleared basis TSI prices.
Singapore Mercantile Exchange (SMX) is planning to launch soon an iron ore futures contract, subject to regulatory approval from theMonetary Authority of Singapore, based on the Metal Bulletin Iron Ore Index (MBIOI) which utilizes daily price data from a broad spectrum of industry participants and independent Chinese steel consultancy and data provider Shanghai Steelhome's widespread contact base of steel producers and iron ore traders across China.[8]
This move follows a switch to index-based quarterly pricing by the world's three largest iron ore miners - Vale, Rio Tinto and BHP Billiton - in early 2010, breaking a 40-year tradition of benchmark annual pricing.
- COUNTRIES OF ORIGIN: BRAZIL, SOUTH AMERICA,CHILE,PERU.
Order Processing:
ICPO with all the procedures of the sellers SCO, including ports of destination, soft probe with authorization and BCL/RWA issued by buyers bank, as sellers bank will communicate with buyers bank to verify funds.
After receipt of all information and approved by the seller, seller will issue the Draft contract.
Please check if your buyer will agree with all "terms" and “procedures” without changing any step of the procedures. We do not give any past performance, any documentation, or websites, or registration numbers on the seller.
We can start with amounts of 50,000mt/monthly ~ 500,000mt/monthly ~ 1,000,000 mt/monthly for 12 month contract with expandable roll over option terms of up to 60 months.