Following feedback received under its open consultation on iron ore index methodologies, Fastmarkets is proposing a widening of the maximum ranges for two impurity components in its index for iron ore 65% Fe blast furnace pellet, cfr Qingdao, $/tonne (MBIOI-PT).

This change would reflect more clearly the product types that Fastmarkets includes in this index and normalizes to its base specification, which have comprised a number of higher-alumina and higher-phosphorus brands since they became the prevailing source of liquidity in the cfr China spot market for iron ore pellets.

The base specification of this index would remain unchanged, meaning this proposal is expected to have no material impact on the behavior of the price.
The current specifications are:

MB-IRO-0012 Iron ore 65% Fe blast furnace pellet, cfr Qingdao, $/tonne MBIOI-PT
Quality: Fe content base 65%, range 60-70%; silica base 4.5%, max 6%; alumina base 0.4%, max 0.8%; phosphorus base 0.03%, max 0.05%; sulfur base 0.01%, max 0.02%; moisture base 2.0%/DW, max 3.0%/DW; granularity max size >90% >10.0mm; compression strength base 250daN, min 200daN
Quantity: Min 10,000 tonnes
Location: cfr Qingdao - normalized for any Chinese mainland sea port
Timing: Within eight weeks
Unit: US$/tonne
Payment Terms: Letters of credit on sight - other payment terms normalized
Publication: Weekly. Friday at 6.30pm Singapore time
Notes: All origins. Data history from April 2012

The new proposed specifications would be:

MB-IRO-0012 Iron ore 65% Fe blast furnace pellet, cfr Qingdao, $/tonne MBIOI-PT
Quality: Fe content base 65%, range 60-70%; silica base 4.5%, max 6%; alumina base 0.4%, max 3.5%; phosphorus base 0.03%, max 0.08%; sulfur base 0.01%, max 0.02%; moisture base 2.0%/DW, max 3.0%/DW; granularity max size >90% >10.0mm; compression strength base 250daN, min 200daN
Quantity: Min 10,000 tonnes
Location: cfr Qingdao - normalized for any Chinese mainland sea port
Timing: Within eight weeks
Unit: US$/tonne
Payment Terms: Letters of credit on sight - other payment terms normalized
Publication: Weekly. Friday at 6.30pm Singapore time
Notes: All origins. Data history from April 2012

The consultation period for this proposed amendment starts from Monday April 5 and will end on Wednesday May 5. The amendment will then take place, subject to market feedback, on Friday May 7.

To provide feedback on this index or if you would like to provide price information by becoming a data submitter to this index, please contact Peter Hannah by email at: pricing@fastmarkets.com. Please add the subject heading "FAO: Peter Hannah, re: iron ore MBIOI-PT."

To see all of Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.