Cleartrade Exchange Pte Ltd. (CLTX), the OTC electronic global marketplace for commodity derivatives, today announced its China Steel Indices have received steadily increasing interest throughout the year.
In the year since CLTX launched its China Steel Indices their uptake and regular usage by clients and the trading of lots through LCH have demonstrated that the market considers this a valuable service. The China Domestic Hot Rolled Coils (HRCs) and China Domestic Hot Rolled Ribbed Bar (Rebar) markets are leading the way whilst the iron-ore volumes are growing exponentially.
Ray Ang, Operations Director of Cleartrade Exchange, said, “China is still relentless in its consumption of steel and iron ore and is set to import more than two-thirds of global sea-borne iron ore this year. Currently, our China Steel Index (CSI) is the only Chinese-based steel index which is based on domestic spot steel transactions within China which allows overseas participants to trade and clear.”
Additionally, the concept of a ‘virtual steel mill’ is gaining ground, linking the trading of iron ore, coking coal and steel, providing comprehensive hedging tools for this group of volatile markets. CLTX offers market participants the ability to manage price risk across the whole supply chain in tandem with changing industry structure and fuelling demand.
