Baosteel exec urges caution on iron ore swaps
Sep 28, 2011 | 04:32 PM
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Tags
Baosteel Group,
steelmakers,
China
QINGDAO, China — Steelmakers should be cautious about using iron ore derivatives to hedge risk, a senior Baosteel Group Corp. Ltd. executive said at an industry conference in China.
The iron ore swaps and futures markets involve credit risks and allow miners and speculators to manipulate physical prices, Baosteel vice president Dai Zhihao told the China Iron and Steel Association (Cisa) annual conference in Qingdao.
Interest in iron ore derivatives has been growing steadily, helped by an army of banks and brokers eager to offer risk management services to steel mills.....
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