Amendment of Fastmarkets 62% Fe iron ore index specs, discontinuation of Pilbara Blend differential

Following a three-month consultation, Fastmarkets has amended the base specifications of its 62% Fe iron ore index to more closely reflect the chemical composition of mainstream mid-grade ore produced in Australia’s Pilbara region

The amendments are to the specifications for silica and alumina content of the index for iron ore 62% Fe fines, cfr Qingdao, $/tonne [MB-IRO-0008].

The previous chemical specifications of this index were:
Fe content: Base 62%, range 60% to 63.5%
Silica: Base 3.5%, maximum 8.0%
Alumina: Base 2.0%, maximum 4.0%
Phosphorus: Base 0.10%, maximum 0.15%
Sulphur: Base 0.02%, maximum 0.06%
Loss on Ignition (%DW): Base 4.7%, maximum 11.0%
Moisture: Base 8.0%, maximum 10.0%

The new specifications incorporating the amendments are:
Fe content: Base 62%, range 60% to 63.5%
Silica: Base 4.0%, maximum 8.0%
Alumina: Base 2.3%, maximum 4.0%
Phosphorus: Base 0.10%, maximum 0.15%
Sulphur: Base 0.02%, maximum 0.06%
Loss on Ignition (%DW): Base 4.7%, maximum 11.0%
Moisture: Base 8.0%, maximum 10.0%

In the calculation of the index, price data with specifications that differ from the base specification of the index is normalized using in-house developed models based on regression analysis of previously observed data. These changes to the index base specifications also intend to increase the predictability of the index calculation by helping to reduce the degree of normalization required to adjust prices for the most-liquid mid-grade products to the index base specification.

All other chemical and physical specification details outside of the base levels for silica and alumina remain unchanged.

Fastmarkets has also discontinued its iron ore product differential 62% Fe Pilbara Blend Fines, cfr Qingdao, $/tonne [MB-IRO-0076] and the associated implied product index - iron ore 62% Fe Pilbara Blend Fines, cfr Qingdao, $/tonne [MB-IRO-0114].

The purpose of Fastmarkets’ Pilbara Blend Fines product differential was to track the daily premium or discount that transparent fixed-price spot transactions realize relative to the value of the Fastmarkets index for iron ore 62% Fe fines, cfr Qingdao, $/tonne [MB-IRO-0008].

The discontinuation of these prices is due to a reduction in the frequency of fixed-price transactions for Pilbara Blend Fines in the seaborne spot market over the past couple of years.

In addition, the differential index naturally becomes less relevant with the changes to the base specification described in this notice.

These amendments and discontinuation took effect from January 3, 2022.

What to read next
Fastmarkets has today discontinued its price assessment for hot-briquetted iron export, fob main port Venezuela (MB-FE-0002).
Major Brazilian iron ore miner Vale’s plan for green briquette megahubs in the Middle East has sparked much curiosity and interest about how they will work, especially with miners looking to take a share of the decarbonization “pie” by ramping up their offerings of direct-charge materials in their attempts to eliminate sintering
Governments of countries which are responsible for half of the global gross domestic product (GDP) outlined new targets for the previously agreed Breakthrough Agenda, a 12-month action plan to accelerate the drive toward decarbonization, delegates heard on Friday November 11 at the United Nations’ COP27 climate change conference in Egypt
The acceptance of green steel so far has been limited by competitive market forces, but it is likely to remain a fundamental focus in the industry, according to market participants
Following a one-month consultation, Fastmarkets has amended its 62% Fe iron ore port index base specifications to more closely reflect the chemical composition of mainstream mid-grade ores produced in Australia’s Pilbara region
Fastmarkets is proposing to launch a weekly indicator for direct-reduced (DR) iron pellet premiums, to be known as the iron ore DR-grade pellet premium indicator, $ per tonne.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed