Gerald Metals opens iron ore trading desk in Switzerland

LONDON, March 19 (Reuters) - Privately held commodity trader Gerald Metals has opened an iron ore trading desk to take advantage of volatility in the price of the steel ingredient, two industry sources said on Wednesday.

The desk is based in Switzerland, and is dealing in physical contracts only, the sources added.

Iron ore .IO62-CNI=SI prices have fallen to their lowest in 1-1/2 years and are at risk of falling further as increased output from top miners Vale VALE5.SA , Rio Tinto RIO.AX

RIO.L and BHP Billiton BHP.AX BLT.L floods the market just as demand from China, the world's top consumer of the ore, slows. urn:newsml:reuters.com:*:nL3N0M8220

"If producers are crying that the price is falling, that's the right moment for traders to move in. A traders job is to make money both ways," said the source.

Gerald Metals was not immediately available to comment.

(Reporting by Maytaal Angel and Silvia Antonioli, editing by Louise Heavens)

((maytaal.angel@thomsonreuters.com)(00442075429105))