Activity on China's online spot-trading platform for iron ore slowed in the past two weeks, a result of weaker economic growth and feeble markets for iron ore and steel, a senior official with an organizer of the platform said on Thursday.

"I would love to describe the platform's operations and transactions as being 'stable'," said Dong Chaobin, president of the China Beijing International Mining Exchange, one of the organizers of the platform.

Iron ore being unloaded at Qingdao port, Shandong province. The steel market has been weak in the past few weeks and iron ore prices have decreased.?[Photo / China Daily]

From its start on May 8 to Thursday, the platform handled eight transactions involving 956,487 metric tons of iron ore.

Those deals had a total value of $130.85 million, an amount that includes 21.6 million yuan ($3.4 million) in transactions conducted in the Chinese currency.

Partly as a result of the government's attempts to control the real estate industry, the steel market has been weak in the past few weeks and iron ore prices have decreased.

According to the Xinhua-China Iron Ore Price Index, China held 98.03 million tons of iron ore in port on Monday, 210,000 tons more than in the previous week. Steel prices decreased by 5.9 percent from April, going from 4,269 yuan to 4,019 yuan a ton on Wednesday.

All these led to the iron ore platform's slower trade, Dong said.

"In addition, people need a certain amount of time with any new platform before they fully accept it and get used to it, including China's iron ore spot-trading platform," he said.

"Our members, including foreign mining companies, Chinese steel producers and traders, need time to learn about the platform and become familiar with it."

To use the platform, buyers and sellers both must pay a commission fee of 0.125 yuan, or 2 cents, for every ton of iron ore transactions they conduct on the platform. Asked if that rule is impeding the platform's transaction volumes, Dong said the exchange has no plans to alter it, saying "the market has its own logic and a formal system shouldn't be changed too quickly or easily simply for the benefit of members".

He said that if any adjustments are made, they won't be seen until at least six months from now.

The platform's slower pace of trade is related to the general iron ore market's condition in the past two weeks, said Zhang Lin, a senior researcher at the Lange Steel Information Research Center.

She said ports have been handling fewer transactions as well.

Media reports have said that a proposed foreign electronic trading platform for iron ore, globalORE, a project supported by BHP Billiton Ltd, will begin operating this week or next. Many industrial insiders say the platform will rival the one in China.

Metalbulletin.com, an industry website, reported on Monday that Chinese steel companies such as Shanghai Baosteel Group Corp, Hunan Valin Steel Co Ltd and China Minmetals Corp have agreed to become founding shareholders in globalOre, according to a statement from Louis Fel, CEO of the platform. In March, the China Iron and Steel Association said it would forbid its members from joining that platform.

Chinese companies have been unable to confirm that information. Zhang said it is likely to be true.

"It's understandable that companies want more choices in the purchase of raw materials," she said. "Steel companies will be able to find more sellers of iron ore and choose the best prices if they enlarge their purchasing channels."

Zhang said it is still too early to say which platform will prove more popular. GlobalOre, he noted, has not released its rules and trading regulations yet.

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