Dalian iron ore contract boosts overall market liquidity

Rather than acting as a rival to SGX, DCE complements its Singapore counterpart, insiders say

iron ore

March 19 saw the delivery of 20,000 tonnes of iron ore in a deal between two Chinese trading companies. Although those figures are small beer for the sector – mining major Glencore Xstrata alone sold 33.2 million tonnes of iron ore in 2013 – it marked the first physical delivery for the iron ore swaps market on the Dalian Commodity Exchange (DCE).

Dalian launched the contract on October 18 last year, enjoying initial success, with total first-day trading volumes roughly equalling Glencore Xstrat