Financial Times FT.com

Clearing move puts pressure on ore pricing

By Javier Blas

Published: May 6 2009 19:23 | Last updated: May 6 2009 19:23

The development of the iron ore spot market was boosted on Wednesday after LCH.Clearnet, Europe’s largest independent clearing house, said that it would start clearing ore contracts.

It is the latest sign that the iron ore market is moving away from the traditional system of annual price negotiations, known as the benchmark, between miners Vale of Brazil, Rio Tinto and BHP Billiton and Chinese steelmakers.

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