China's Dalian Commodity Exchange (DCE) said on Friday it has included Yandi Fines and Karara Concentrate as new deliverable brands for its benchmark iron ore futures in an effort to enhance stable market operations.
Yandi Fines, with around 58% iron content produced by Australian miner BHP Group Ltd <BHP.AX>, and Karara Concentrate, with around 65% iron content jointly invested by China's Ansteel Group and Gindalbie Metals Ltd in Australia, will be introduced as new brands to the September 2020 futures contract and subsequent contracts, the DCE said in a statement.
The premiums and discounts of Yandi Fines and Karara Concentrate are set at -25 yuan (-$3.60) per tonne and 85 yuan ($12.22) per tonne, respectively, according to the exchange.
"The expansion in brands can bring around 50 million tonnes of deliverables per year... and further ensure iron ore futures market's stability and bring more convenience to companies," the Dalian bourse said in a separate press release sent to Reuters.
It said the comment was made by market participants that it did not identify.
China revised rules for deliverable iron ore brands in September 2019. It now has 13 deliverable iron ore brands on the Dalian exchange.
(Reporting by Min Zhang and Tom Daly; Editing by Louise Heavens and William Mallard)
