RMB controls stifling iron ore swap market participation in China

iron ore

The renminbi's lack of convertibility and concerns that steel contracts are not physically settled are limiting Chinese steel mill participation in the iron ore swaps market, according to a China industry participant.

Record levels of volume in iron ore swaps have been traded on the Singapore Exchange this year, leading some observers to speculate that a critical mass has been achieved with traders viewing the derivative as a proxy for China. However, Chen Dongwei, deputy general manager at Beij