LONDON (Scrap Monster): Even though both companies had publicly denied their usage of iron ore derivatives, there are information stating otherwise. According to sources, ArcelorMittal have been hedging the iron ore traders since the month of September and Tata has recently decided to use derivatives in their products, which would start from the beginning of next year.

 

The source states that, ArcelorMittal has been highly active in the business of iron ore swapping in the month of September, but the company is not pushing its limit and at the present. The company is still too confused regarding the arrangement of the matter and are busy with organizing things.

 

The sources also reported that, the decisi0on regarding hedge at Tata steel has been shifted to the Board. Even so, both the steel making companies declined to comment over the matter. Both the companies have already stood against iron ore as well as steel derivatives, stating that, the usage of such derivatives, a chance to the spectaculars to raise inordinate price influence.

 

The volume of iron ore derivatives for the current year is about to reach 550 million tonnes. The volume has not even nearly doubled since the launch of the commodity at the Singapore Exchange in the year 2009. The Steel makers and traders in China, world largest steel producing country has welcomed the product whole heartily.