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LME mulls iron ore swaps contract launch

February 02, 2012 - 17:26 GMT Location: London

KEYWORDS: LME , iron ore , contract , swap , ferrous , sale

The London Metal Exchange is considering the launch of a cleared iron ore swaps contract, a spokeswoman from the exchange told Metal Bulletin on Thursday February 2.

“We have spoken about the potential of steel and iron ore swaps,” the spokeswoman said, adding that neither contract was “imminent”. The exchange was focused on its own possible sale, she said, but accepted that the LME could remain unsold until 2013. “We continue to discuss new contracts,” the spokeswoman added. The exchange’s board has been considering the launch of an iron ore swaps contract for more than a year, an LME insider told Metal Bulletin. Most popular derivative Iron ore swaps are the globe’s most popular ferrous derivative, with volumes on the Singapore Exchange (SGX), the contract’s favoured clearing location, topping 7 million tonnes in October 2011. The launch of an iron ore...

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