Iron Ore Traders Look to the Future

(Beijing) -- As a manager at an iron ore trading company in Beijing, Wang Xiaojuan has seen how international trading has changed in the last five years.

The pricing mechanism for iron ore has changed from long-term contracts to quarterly pricing, and then to index pricing. The changes have meant more frequent fluctuations in prices and smaller profit margins for traditional traders. Hence, it is no wonder Wang's company began rolling out iron ore financial derivative products last year.