The 65% Fe iron ore derivative contract offered by the Singapore Exchange (SGX) registered record levels of traded volume in September 2019, with the contract seeing participation from a diverse set of stakeholders in the iron ore value chain.
Traded volume stood at 2.26 million tonnes last month, up from 2.12 million tonnes in July when the previous record was set, according to SGX data.September was the third consecutive month of traded volume above 2 million tonnes, underlining persistent interest in the contract.The 62% Fe iron ore market was rangebound at $90-100 for most of September, with a month-on-month increase of 2.8%; while the 65% Fe market saw a more modest 0.7% rise during the same period. The 65% Fe iron ore derivative contract has garnered plenty of interest from the banks lately, a trader in Singapore said In September, the spread between 65% and 62% Fe continued to narrow and reached $6.60 per tonne, with bulk of the supply disruptions this year concentrated in the mid-grade segment.Ample availability of high-grade materials, such as iron ore concentrates, also checked any significant increase in prices of the high-grade fines, which...