Singapore Exchange (SGX) launched two new iron ore derivatives on March 9, 2015, facing the market in a lower grade.

SGX’s liquidation quantity of iron ore swaps occupies over 90% of this business globally. The target object of the newly-added swap contracts and futures contracts this time is iron ore with an iron content of 58% and the target object of previous contracts was iron ore with an iron content of 62%.

The cash settlement of contracts of the newly-launched derivatives will be conducted according to the iron ore indexes of Metal Bulletin and TSI58% respectively. Since May 2009, iron ore indexes released by Metal Bulletin have been changed to be daily released. This index includes price indication towards non-ferrous metal and steel market in the world.