Delegates at the Singapore Exchange's (SGX) annual Iron Ore Week welcomed the SGX's multiple iron-ore derivative contracts launched over the last decade, saying that each contract served specific market requirements, Fastmarkets heard.
"Iron ore quality depends a lot on geological factors and, unlike copper, it is not a homogenous [product] so therefore it makes sense to have different derivatives for different iron-ore grades," Shawn Teo, general manager of ferrous raw materials at Mitsubishi Corporation RTM International said.Although the copper market has some degree of variability with location premiums, the different kinds and grades of iron ore warrant different derivatives' contracts, Eric Bretting, executive director and senior bulks trader at JP Morgan said.Much of the conversation surrounding iron ore demand in China - the world's largest consumer of iron ore - is tied to the country's macroeconomic health. Market participants consider copper and iron ore to be proxies for China's macroeconomic conditions and outlook, although, volumes involving...