Transactions for the supply of iron ore to China must be made on the Beijing International Mining Exchange CBMX - the head of CISA

The head of the Chinese Association of Chugun and began to CISA calls on to conclude transactions for the supply of iron ore on a specially created by the Beijing International Mining Exchange of CBMX to determine the "honest" price index for metallurgical raw materials. Van Xioki, Vice President of CISA, says that China’s metallurgical plants should buy more iron ore using spect-free platforms in order to reduce the effect on the world price index, which, according to the official, are manipulated today.

"The miners offer very few ores on a competitive basis in order to influence prices and this is unfair," Van said at the sectoral conference of the mining industry in Tsindao.

As you know at the moment, there are two indices used in the conclusion of contracts for the supply of iron ore to buyers such as, for example, Baosteel. This is the Platts IO62-CNI = Si and Metal Bulletin IO62-CNO = MB.

The use of existing indexes is “irrationally”, Van said, especially since in some cases the indices came out on the day when huge contracts were concluded, which, according to Van, makes them “suspicious”.

At the conference, the head of CISA called on the orearies to reserve more iron ore raw materials for sale on the CMBX exchange, emphasizing that the new price index can be set if the daily transactions exceeds 8,000 tons per day.