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SGX 65% Fe iron ore futures see over 30 participants trade over 3 million tonnes since Dec launch

Mining News - Published on Fri, 15 Feb 2019

Image Source: SteelGuru
The Singapore Exchange said Wednesday its new 65% Fe iron ore futures contract has seen 3 million tonnes of trading volume since launching on December 3, with over 30 market participants. The SGX said there is interest to trade the differential between benchmark S&P Global Platts TSI 62% Fe fines and 65% Fe, to manage physical exposure and pricing basis risk across iron ore grades.

New trading parties are in the process of getting set up to trade the 65% Fe contract, which is cash settled basis MBIOI 65% Fe Brazilian Fines, CFR Qingdao

There are active markets in both outrights and spreads, with SGX's TSI 62% Fe being quoted across the forward curve in the over-the-counter brokered market, and financial institution trading interest, SGX said.

The 65% Fe-62% Fe spread was $13.62/dmt, with 65% Fe at a premium of 16.8% over the TSI 62% Fe Q2 contract, based on SGX closing settlement prices Tuesday.

On December 5, the SGX marked 65% Fe for Q2 2019 at $76.44/dmt, with a $12.87/dmt spread or a 20% premium over the TSI 62% Fe Q2 contract.

Source :

Posted By : Rabi Wangkhem on Fri, 15 Feb 2019
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