Singapore-based iron ore platform to compete with China's beginning on Wednesday

A second major physical iron ore trading platform, supported by major mining companies and Chinese steelmakers will launch this Wednesday, reports Reuters, competing directly with China's new own platform in a race to create an industry price benchmark.

The Singapore-based Global Ore platform, includes major miners such as Rio Tinto (NYSE:RIO), BHP Billiton (NYSE:RIO), Vale (NYSE:VALE), Glencore (LON:GLEN), Chinese steelmaker Baoshan Iron and Steel, and China's Hunan Valin and Minmetals, said GlobalOre said on its website.

GlobalOre will be have an online trading tool that will allow members to buy or sell iron ore in a range of product specifications, like CBMX.

The China Beijing Metals Exchange (CBMX), the country’s first physical iron ore trading platform was launched on May 8, also with the major producers of the commodity BHP Billiton, Vale and Rio Tinto  as members. In its first 10 days of trading, volumes reached nearly 700,000 tonnes.

Combined BHP, Vale and Rio Tinto control nearly 70% of the 1 billion tonne annual iron ore seaborne trade.