Fortescue Metals Group (FMG), the third-largest Australian iron ore producer, signed a contract with China Beijing International Mining Exchange to become the first overseas member of China's iron ore spot trading platform, reports Xinhua.com.

The iron ore spot trading platform was launched in Beijing by the China Iron and Steel Association and the Beijing International Mining Exchange in January in a move to help China gain more influence in global iron ore pricing.

According to the report, there is now a time table for trading to commence on the platform.

Wang Xiaoqi, vice head of the China Iron and Steel, said the platform will help to establish a fair and transparent pricing mechanism for iron ore by reducing speculation, as compared with the OTC platform and swap trading.

According to Sheng Changzhi, the deputy secretary general of the iron ore logistics committee at the China Federation of Logistics and Purchasing, the founding members of the platform are mainly Chinese state-owned enterprises.

The success of the platform will depend on market recognition and transaction volume, said Sheng.

Wang said the association welcomes the participation of the big three global iron ore miners, Vale, BHP Billiton, and Rio Tinto.

Source:capitalvue.com