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SHANGHAI, March 14 (Reuters) - The Dalian Commodity Exchange in a trial move will slash transaction fees for near-month iron ore contracts between May and July, it said on Tuesday.
It will charge only 10 percent of the transaction fees previously assessed by the exchange for some contracts during May 2 and July 31. The contracts will include trading for the period between July and November, it added.
The move is expected to boost liquidity of the product and encourage more industrial players to participate in trading, analysts said.
The Dalian benchmark iron ore contract was launched in 2013. It has gained 24 percent this year. The contract, which has been widely watched by market participants and investment companies, has an increasing impact on physical market.
China is the world's top consumer of iron ore and accounts for about up to 80 percent of the global seaborne trade of the raw material.
Dalian exchange is also planning to open up the contract to foreign investors. At present, China has banned investors abroad from directly trading local commodity futures unless they set up a local unit in China. (Reporting by Ruby Lian and Josephine Mason; Editing by Tom Hogue and Sherry Jacob-Phillips)