Spotlight Iron ore price collapse boosts demand for hedging

摘要

Iron ore's dramaticfall in value in the second half of August saw OTC iron ore derivatives boom as traders and producers rushed in to hedge against the price moves. While the raw material's rapid price decline will have left many smaller market partici pants which hold long positions lickingtheir wounds, the new lower price paradigm could open up the market to new players from the downstream end of the market.