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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:
Silica: Base 4.0%, maximum 8.0%
Alumina: Base 2.3%, maximum 4.0%
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.
To provide feedback on this price or if you would like to provide price information by becoming a data submitter to this price, please email pricing@fastmarkets.com with the subject heading “FAO: Jane Fan, re: MBIOI-62.”
To see all of Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.