Brokerage firm London Commodity Brokers (LCB) is in talks with spot iron ore trading platform, the China Beijing International Exchange (CBMX) to become the first broker to take a seat on the exchange, LCB ceo Clive Murray told Metal Bulletin on May 4.
“We can share our experiences in other markets with them,” Murray said.
LCB has also been in talks with CBMX backer, the China Iron and Steel Assn. Murray said.
The brokerage firm is heavily involved in the physical iron ore market as well as brokering iron ore derivatives.
“We have been instrumental in the development of the coal market and can show them how the brokered market works,” Murray added.
The CBMX is yet to allow brokers to take seats on the exchange.
BHP Billiton became the last of the world’s three biggest iron ore miners to join the CBMX
on April 19.
The CBMX has been set up in response to the breakdown of the historical benchmark pricing system in iron ore and will function as a virtual trading floor where iron ore producers can sell spot cargoes to Chinese steel mills anonymously.
The CBMX, which numbers Rio Tinto, Fortescue Metals Group, Vale and some of China’s biggest steel mills among its members, is set to start live trading on May 8.