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
"We can share our experiences in other markets with them,"
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
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.