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Fastmarkets has amended the base silica and alumina specifications of its index for iron ore 62% Fe fines, fot Qingdao, yuan/wet tonne (MB-IRO-0011) and its corresponding currency-converted index for iron ore 62% Fe fines, fot Qingdao, $/tonne conversion (MB-IRO-0022).
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%Sulfur: Base 0.02%, maximum 0.06%Moisture: Base 8.0%, maximum 10.0%
The amended new specifications 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%Sulfur: Base 0.02%, maximum 0.06%Moisture: Base 8.0%, maximum 10.0%
The changes to the silica and alumina base specifications aim to more closely reflect the chemical composition of mainstream mid-grade ores produced in Australia’s Pilbara region.
In the calculation of the index, pricing data for material with specifications different from that of the base specification is normalized using in-house developed models based on regression analysis. These changes of base specifications also intend to increase the predictability of the index calculation by helping reduce the degree of normalization required to adjust prices for the most-liquid Australian mid-grade products to the index’s base specification.
All other chemical and physical specification details outside of silica and alumina base levels remain unchanged.
The amendment took effect from Tuesday November 1.
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: Iron Ore 62% Fe Port Index.”
To see all of Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.