China launches iron ore futures

China, the world's second-largest iron ore producer, today launched its first iron ore futures with physical delivery to avoid risks caused by volatility in prices.
Shi Jianjun, General Manager of the Yongan Futures, one of China's largest futures company, said the launch of iron ore futures at Dalian Commodity Exchange serves as a tool to dodge the risks associated with volatile prices.
Dalian, a seaside resort in northeast Liaoning Province, is home to one of China's four futures exchanges and mainly trades agricultural products.
Iron ore is the most important raw material for steel production, with Australia, China, Brazil and India accounting for around 80 per cent of the world total output.

The May 2014 contract, the most actively traded of the day, rising 1.77 per cent to 977 yuan (USD 159.19 ) per tonne, compared with the contract benchmark price as 960 yuan per tonne, official media here reported.
China reported 440 million tonnes in output, 740 million tonnes in imports and 1.05 billion tonnes in consumption last year, state-run Xinhua news agency reported.