Baowu News

[ 2018-07-03 ]

In order to enhance the level of economic development of modern service industries, promote the healthy development of the commodity spot market and improve the international influence of the RMB iron ore price, on the morning of June 29, China (Shanghai) Free Trade Zone Iron Ore Import Price Index (FTZ Index) was officially released. From now on, every weekday at 9: 15am, the FTZ index will be released simultaneously by Shanghai Minerals International Trading Center, XIBEN Newline Stock Co.,Ltd and Shanghai OTC Commodity Derivatives Association.
 
The FTZ index is based on the spot price of RMB dry tons of non-taxable imported iron ore in Zhoushan at DAP, with reference to the bonded warehouse of Zhoushan Port in Zhejiang Province as the standard trading warehouse, and combined with the main price changes in the international iron ore market. According to the preset data logic model and generation rules, the internationalization index is formed and being the leading indicator to measure the iron ore imports in China. After the introduction of the index, it will give full play to the authoritative, scientific, and practical iron ore pricing in RMB, eliminate the gap between duty-not-paid goods and port spot goods, and link the forward move of mine sales and the backward move strategy of steel mills' procurement, favoring an active domestic and foreign iron ore trading market for China's iron and steel industrial chain .

In the context of accelerating the construction of Shanghai International Financial Center, the compilation and release of the index is of great significance. From a macro point of view, since the establishment of the Shanghai Free Trade Zone, a number of international commodity trading and resource allocation platforms have emerged, in order to better serve international economic and trade businesses such as energy products, basic industrial raw materials, and bulk agricultural products, it is urgent to establish its own international price index. In addition, with the construction of the Shanghai International Financial Center, the Shanghai Free Trade Zone also gives full play to the advantages of institutional innovation, the implementation of the RMB internationalization strategy, is forming a number of international influential financial market "Shanghai prices." From the micro point of view, iron ore is one of the strategic commodities for national economic development. In 2017, China imported 1.075 billion tons of iron ore, accounting for nearly 70% of the total global imports. However, compared with the huge volume of trade, China is still lack of adequate say in the pricing of iron ore. With the expansion of domestic hedging demand and the acceleration of the opening up of the financial industry, the voice of using China index as the basis of iron ore settlement is growing. Therefore, the industry has given more expectations to the compilation and release of the Shanghai Free Trade Zone import iron ore price index.

It is understood that the index is under the guidance of the China (Shanghai) Free Trade pilot Zone Management Commission, the Shanghai Municipal Commission of economy and Information Technology, the Shanghai Municipal Commerce Commission, and the Shanghai Municipal Financial Services Office. Issued jointly by Shanghai Ore International Trading Center Co., Ltd. and XIBEN Newline Stock Co.,Ltd, Shanghai OTC Commodity Derivatives Association. Shanghai Ore International Trading Center Co., Ltd. is an international commodity spot trading and resource allocation platform enterprise controlled by Baosteel Resources, which was registered in Shanghai Free Trade Zone in August 2015.

Source:Baowu News Centre