TSI Iron and Steel Index adopts secure Internet technology, collects clearly classified price information of steel, scrap and iron ore, and operates fairly and independently. After calculation, it reports the weekly reference price of steel and scrap and the daily reference price of iron ore. Companies providing steel price data are distributed at all ends of the supply chain of steel, scrap and iron ore (data suppliers), and they can input price data under the principle of confidentiality by using secure network technology. Compared with the traditional "telephone survey" method, our obvious advantages are: fast, safe and verifiable, and enable global data suppliers to submit data conveniently anytime and anywhere. On the basis of weekly price data, the reference price is calculated by strict, transparent and empirical procedures. The powerful and verifiable calculation method used by TSI steel index and other financial market products provides the necessary settlement price. TSI steel index opens the door for the vigorous development of price risk management tools, which can help steel buyers and sellers cope with steel price fluctuations.

prospect

The rapid growth of iron ore demand since 200 1 has given birth to the influential spot market.

In 20 1 1 year, the global seaborne iron ore is expected to exceed 6,543.8 billion tons, of which more than 50% will flow into the spot market, which reflects the supply and demand trend more closely than the original long association model.

20 1 1 is the first year after the iron ore pricing reform. From annual long-term cooperative pricing to index-related pricing, other more flexible pricing (such as pellet and lump ore trade) has emerged.

Currently it is a quarterly contract (Vale &; RioTinto), miners are or have been implementing monthly contracts (BHP). Will the combination of other flexible ways be converted into full floating price contracts in the future?

The appearance of iron ore index, such as TSI index; And financial hedging instruments, such as financial derivatives contracts of SGX, LCH, NOS, CME, ICEX, Credit Suisse and Deutsche Bank. It is irreversible to provide miners, traders and steel mills with a new trend of managing price risk.