Iron ore prices are set to get more competitive in the following months as global iron ore miners Vale SA, BHP Billiton Ltd. and Rio Tinto, along with some giant Chinese steel producers, launch on middle this week yet another new iron ore global pricing system.
This, barely less than a month after the China Beijing International Mining Exchange (CBMX) went online in early May.
Called globalORE, the physical iron ore trading platform will specifically launch on Wednesday, May 30, at 3pm Singapore/China time.
Apart from the three top miners, Chinese steelmaker Baoshan Iron and Steel is also part globalORE. Incidentally, both miners and steelmaker are members of CBMX.
Among globalORE's founding shareholders include Baosteel, BHP Billiton, Glencore, Hunan Valin, Minmetals, Rio Tinto and Vale, the Singapore-based company said on its website.
GlobalOre will be using an online trading tool which will enable members to purchase or offer iron ore in a varied suit of product specifications.
Recently, the CBMX said that iron ore online spot trading platform further weakened in the past two weeks, showing a further slowing economic growth and shaky markets for iron ore and steel.
Spot iron prices have shed more than 10 per cent this month, trading at just a little over $130 a tonne, data from Reuters News said.