According to the report, the Singapore Exchange (SGX) mentioned on Thursday that it will launch new high-grade iron ore derivatives contract in December, aiming to enter into the market demand for higher quality raw material.

With the world's largest steel producer concentration, China tended to utilize a
higher grade iron ore in order to reduce pollutant emissions and comply with
environmental protection policies, which will be certainly in a boon for the top supplier, Brazilian mining giant Vale.

The SGX further indicated that it would be the first high-grade iron ore derivatives in the market and this typical derivative was in refer to the index prices of 62% iron. Based on the turnover ranking list, the SGX was the world’s second biggest marketplace for iron ore derivatives in terms of volume after Chinese Dalian Commodity Exchange.

The SGX released a trading platform for iron ore derivatives including futures and options, reached 9.3 million contracts in January to September, equivalent to around 932 million tons of iron ore. During the same period, traded amount on iron ore in Dalian achieved 197 million contracts, approximately 19.7 billion tons of iron ore.