Tuesday, 23 Aug 2011
Reuters reported that volumes traded on the Singapore Mercantile Exchange's iron ore futures remained thin a week after the bourse launched the contract with market participants opting for widely traded swaps instead.
SMX owned by India's Financial Technologies introduced its cash settled iron ore futures contract on August 12, hoping to tap into a growing market to hedge prices of the steelmaking raw ingredient.
From two lots traded on the launch date, volume rose as high as 38 lots on Tuesday. Volumes reached 36 lots by 0909 GMT on Friday.
The most traded August iron ore contract stood at USD 177.50 a tonne, after closing at USD 177.80 on Thursday. It began trading at USD 177 on August 12.
A Singapore based iron ore trader said that "It will take some time before people start trading it. More people are into swaps and I don't think many people are even aware about SMX's iron ore futures.”
(Sourced from Reuters)
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