New iron ore platform faces tough times

Compared with the successful debut on May 8, China's iron ore platform has since experienced the doldrums. Up to May 22, it has only handled seven transactions, a volume of about 856,500 tons and $119 million, Beijing Times reported on Wednesday.

The platform is seen by industrial insiders as an important measure for China to acquire its discourse power in the global iron ore price system.

It is believed that, in order to have a certain influence and the right to speak, the trading volume of the platform should reach at least 100 million tons, equivalent to about 20 percent of China's total imported iron ore quantity. There is still a very large gap between the current level of trading volume and the planning.

China Beijing International Mining Exchange explained that the reason for the bleak situation is because there is a lack of enthusiasm among buyers and the demand for the entire iron ore market remains low.

Xu Yongbo, an iron ore industry analyst for 315.com.cn, a bulk commodity e-commerce platform, noted that transaction parties need a process to adapt to the platform, and the incomplete problems of the platform itself are another reason for the slump.

It is reported that, as a competitor of Chinese iron ore trading platform, a similar platform will be formally opening soon in Singapore. It will be a big challenge for the Chinese iron ore platform to build influence.