CISA to publish iron ore Index from October 1

Friday, 02 Sep 2011

Bloomberg reported that the China Iron and Steel Association will start publishing a weekly iron ore index on October 1 as commodity pricing services compete to have a bigger say over pricing of the raw material used in steelmaking.

Mr Luo Bingsheng the deputy party secretary of the association said “We are able to collect data from all domestic mines and 35 ports nationwide. The group, known as CISA represents China 77 biggest mills.”

He said that “It isn’t mandatory for steelmakers to replace other price indicators. But an index launched by the steel association will be well received by its members.”

Mr Zhang Changfu Vice Chairman said the association index which will consist of domestic and import prices and will more truthfully reflect China market reality and guide orderly imports.

Quarterly iron ore prices are typically based on figures derived by deducting freight costs from the three month average of daily iron ore indexes compiled by Platts, the Steel Index Ltd and Metal Bulletin with a one month lag period.

(Sourced from Bloomberg)