PRICING NOTICE: Launch of spot 65% Fe iron ore pellet premium index quoted over 65% Fe fines

Fastmarkets will, on Friday May 7, launch a new weekly price index for the premium that high-quality 65% Fe blast furnace grade iron ore pellet commands on a spot basis above the 65% Fe Fines index.

Following a two-month consultation during which favorable feedback was received, Fastmarkets will launch a standalone pellet premium index reflecting the premium that high-quality international pellets achieve over its 65% Fe fines Index on a cfr China spot basis. This will replace its existing implied pellet premium (MB-IRO-0150), which will henceforth be discontinued.

This new launch aims to satisfy demand from market participants to more clearly and transparently track the premium that higher-quality international pellets can achieve on a cfr China spot basis, where they are most commonly traded with a fixed premium negotiated to the Fastmarkets 65% Fe fines Index. China’s growing appetite for higher-quality iron ore, including pellets, is seeing an increase in the frequency of top-tier pellet cargoes being sold on this basis that market participants expect will continue into the future.

The specifications for the new pellet premium index are as follows:

MB-IRO-0177 – Iron ore pellet premium over 65% Fe fines, cfr China
Quality: Fe: base 65%, min 64.5%; Si: base 4.5%, max 6.0%; Al: base 0.4%, max 0.6%; P: base 0.03%, max 0.05%; S: base 0.01%, max 0.02%; Moisture: base 2.0%, max 3.0%; CCS: base 230 daN, min 220 daN; Sizing: <5% <5.0mm
Quantity: min 10,000 tonnes
Location: cfr Qingdao (other main sea ports normalized)
Timing: delivery within eight weeks
Unit: $ per dry metric tonne
Publication: Weekly on Friday, 6.30pm Singapore time

To provide feedback on this launch, or if you would like to provide price information by becoming a data submitter, please contact Peter Hannah by email at pricing@fastmarkets.com. Please add the subject heading ‘FAO: Peter Hannah re: Launch of Pellet Premium Index’

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

What to read next
The publication of the affected prices was delayed for 50 minutes. The following indices were published late: MB-MNO-0001 Manganese ore high grade index, cif Tianjin, $ per dmtu MB-MNO-0002 Manganese ore semi carbonate index, 36.5% Mn, fob Port Elizabeth, $/dmtu MB-MNO-0003 Manganese ore semi carbonate index, 36.5% Mn, cif Tianjin, $/dmtu These prices are a part of the […]
Fastmarkets proposes to amend the specifications of its weekly price assessment for MB-STE-0037 steel rebar domestic exw Italy to better reflect the material traded in the market.
The purpose of this review is to ensure that the index continues to accurately reflect prevailing market conditions. We welcome feedback from industry participants on potential amendments to the base specification. This consultation, which is open until August 9, 2025 seeks to ensure that our methodologies continue to reflect the physical market under indexation, in […]
Fastmarkets has launched MB-AL-0424 Aluminium P1020A premium, fob Indonesia, $/tonne on July 9 due to an expected increase in Indonesia-origin aluminium exports. MB-AL-0424 Aluminium P1020A premium, fob Indonesia, $/tonneQuality: P1020A or 99.7 % Minimum Al purity (Si 0.10% max, Fe 0.20% max) in line with LME specifications. Ingot, T-bar, sowQuantity: Min 500 tonnesLocation: FOB IndonesiaTiming: […]
Information came to light that mill buying offers had been adjusted for July following Fastmarkets’ settlement of these prices on that date, leading to an incorrect published assessment for the following grades: MB-STE-0789 Steel scrap No1 heavy melting, consumer buying price, fob Montreal, Canadian $/net ton was previously published at C$245 ($179.41) per net ton, a C$10 […]
Fastmarkets has corrected its daily AG-PLM-0012 refined bleached deodorised (RBD) palm olein, fob Indonesia price assessment, which was published incorrectly on July 7 due to an input error.