The Dalian Commodity Exchange opens trading of iron ore futures to foreign investors from Friday, as Bloomberg reports this morning, marking another attempt by China to increase its control over the metals prices.
Iron ore, one of China’s most important imports, is already heavily influenced by the Chinese market. Last year China traded 20 times that traded in the rest of the world, massively outstripping local competitors such as the Singapore exchange.
Just as Shanghai issued its first yuan-denominated crude oil futures in late March, China hopes that direct foreign access to the market will further boost global clout and importance of the currency. The Dalian exchange said on its website that “opening the market to increase the credibility of the price and its profile as a global benchmark, enabling it to reflect world supply and demand in a more accurate and objective way.”