Bloomberg reported that iron ore swaps were little changed as trading slowed on holidays in China, according to SSY Futures Ltd., a unit of the world’s second largest shipbroker.

Fourth quarter contracts declined 0.2% to USD107 per DMT, according to Mr George Bushnell, an iron-ore derivatives broker at SSY in Singapore.

Mr Bushnell said “There’s nobody really chasing it in either direction. Potentially a bit more activity can be expected on swaps tomorrow, but in relative terms liquidity remains thin, as is to be expected with physical iron ore flat.”

Trading in the swaps will more than triple this year as investors use the derivatives to bet on Chinese economic growth and steel demand, according to Freight Investor Services Ltd, the largest broker of the contracts.

Source - Bloomberg

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