Reuters reported that China launched its first physical iron ore trading platform in a further move to strengthen its pricing power over the sector dominated by foreign miners.

The China Beijing International Mining Exchange provides the online platform together with the China Iron & Steel Association and the China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters.

The exchange said in a statement at an opening ceremony in Beijing said "The platform is aimed to fully achieve the price discovery form a credible pricing mechanism and reduce iron ore price volatility caused by manipulation."

It added that it will not develop iron ore derivatives such as swaps and futures, but the platform would be open to both domestic and foreign steelmakers, iron ore suppliers and traders.

China major steel mills Baosteel, Hebei Steel, Wuhan Steel, Shougang and Angang as well as large iron ore traders including China Minmetals and Sinosteel have already agreed to become the sponsor members of the platform.

China has long believed that its position as the world biggest iron ore consumer entitles it to a bigger say when it comes to prices.

(Sourced from Reuters)