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Iron ore derivatives trade booms as prices tank and hedging rises

Producers driven to hedge to manage risk alongside speculators betting prices will fall further

NOT IRON CLAD: Iron ore has lost 33 per cent this year and, at below US$48 per tonne, it is close to a record low of US$44.10 hit in July, data from price assessor The Steel Index shows.


TRADING volumes for iron ore derivatives have more than doubled this year from 2014 and are set to climb further, driven by a growing appetite to manage risks in a market where producers are struggling to survive as prices crumble.

A global glut, with major miners churning...

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