CISA to release weekly iron ore price index

The China Iron & Steel Association (CISA), a steel lobby group, announced it will launch its own iron ore index this month, in an effort to boost the country’s influence over global commodity pricing, state media reported. The “China Iron Ore Prices Index” will be released weekly and based on the prices of dry iron ore concentrate from 32 domestic mines, as well as import price data from eight ports. At present, foreign companies including Platts, the Metal Bulletin and The Steel Index provide iron ore indexes based on the spot market. Platts’ index is used by three major global iron ore producers – Vale (VALE.NYSE, VALE.Euronext, XVALO.BMAD), Rio Tinto Group (RIO.LSE, RIO.ASX) and BHP Billiton (BHP.NYSE, BLT.LSE, BHP.ASX) – and Chinese stakeholders complain it works in the miners’ favor. Xinhua News Agency and Chinese consultancy firm Custeel.com already publish indices, but neither are used by global miners.