Iron ore’s growing appeal: investor participation and market development

S&P GLOBAL PLATTS | Now widely viewed as the second most important commodity behind oil, the evolution of iron ore has mirrored the transformation of China. One of the least volatile commodities in 2020, iron ore has outperformed metals and mining equities, which over the last seven years are roughly flat, while the S&P GSCI Iron Ore Index has more than tripled.

The emergence of iron ore has been a rapid one by commodity market standards. Just 10 years ago, the magnetic red dirt was an opaque market with contract negotiations taking place annually in smoke-filled rooms in Japan and later China. The market now has two liquid futures markets on the Singapore Exchange (SGX) and Dalian Commodity Exchange (DCE).  These financial markets are trading 1.2 times and 20 times physical seaborne market volumes, respectively.

To read the full article, click here.

  • LinkedIn
  • Twitter

© 2020 Energen. This website represents a proof of concept of the future platform