Iron Ore Trading Tripled Last Month on Demand Speculation
Trading in iron ore tripled last month from a year earlier on speculation of increased demand this month after China holidays, The Steel Index said.
Swaps and options trading in iron ore across all exchanges and clearinghouses was 19.63 million tons, near the record of 20.3 million tons in September 2012 and up 215 percent from 6.24 million tons a year earlier, The Steel Index, which publishes iron ore prices, said in an e-mailed report today. Prices of ore with 62 percent iron ore content delivered to the Chinese port of Tianjin climbed 5.3 percent in January.
Volatility increased in the second half of January as “some traders cut short positions, further boosting liquidity,” The Steel Index said.
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