To push forward the building of the domestic platforms for the futures and spot trading of mineral products and promote the sound integration of the futures market and spot market, on August 7, Dalian Commodity Exchange (DCE) and the China Beijing International Mining Exchange (CBMX) signed an agreement of strategic cooperation in Dalian in a bid to deepen the partnership of the two sides.
Under the agreement, on the basis of the principle of mutual assistance, conscientiousness, cooperation and mutual benefits, the two sides will carry out in-depth cooperation in exchange and sharing of information, product research, market development and promotion, industrial services, and other fields, in a bid to promote the construction and development of the platforms for the iron ore spots and futures trading in China.
The industry researchers believe that the cooperation between DCE and the CBMX will speed up the listing of the iron ore futures, enhance the market cultivating and functioning after the listing of the product, and facilitate the CBMX’s efforts in building China’s platform for iron ore spots trading by strengthening the position of the spots trading platform and giving more play to the role of the platform in the spot market. Meanwhile, as China is the world's largest iron ore market, the cooperation of the two giants in the domestic futures and spot markets will promote the adequate integration of the sutures market and the spot market, bring the integration effect of the markets into play, develop the iron ore cross-market trading mechanism and model, advance the formation of fair, just, reasonable and transparent market prices of iron ore, and boost the sound, orderly and stable development of the iron ore market, so as to have more say in the market.
The CBMX is a public service agency for trading of mining rights and minerals established with the approval of the Beijing Municipal People's Government, a platform for trading of mining rights designated by the Beijing Municipal Bureau of Land and Resources, as well as the operator of China iron ore spot trading platform. The establishment of China iron ore spot trading platform was jointly initiated by the China Iron and Steel Association, the China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (CCCMC) and the CBMX on January 16, 2012, and put into operation on May 8, 2012, the platform has gathered the major clients of the iron ore the spot market with 225 registered members.