May 4, 2018 / 1:14 AM / 3 months ago

Dalian iron ore retreats as Chinese contract goes international

May 4 (Reuters) - China’s iron ore futures fell on Friday, the first day it allowed foreign investors to trade the contract in a bid to boost its sway over pricing for one of its top commodity imports.

Opening the door to international players is expected to increase trading in the contract, which was launched in 2013 and is already among China’s most liquid derivatives.

Major Western traders previously had access to the iron ore contract through local Chinese entities, but Dalian’s decision to internationalise means foreign companies no longer need to set up local Chinese units, opening the door to more market participants.

The most actively traded September iron ore on the Dalian Commodity Exchange was down 1.7 percent at 469 yuan ($74) a tonne by 0106 GMT.

That followed a two-day spike that pushed the contract to its highest level in more than a week on Thursday. ($1 = 6.3520 Chinese yuan) (Reporting by Manolo Serapio Jr.; editing by Richard Pullin)

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