Amendment to iron ore 65% Fe Brazil-origin fines index specifications

Fastmarkets has decided to amend the base specifications of its iron ore 65% Fe Brazil-origin fines index to more closely align with the specifications of Brazilian high-grade fines.

Fastmarkets’ index for iron ore 65% Fe Brazil-origin fines, cfr Qingdao, $/tonne [MB-IRO-0009] tracks the spot prices of Brazil-origin 65% Fe iron ore fines in the CFR China spot market, with its base specifications set to match the prevailing quality of the Carajas fines product, IOCJ.

Following a three-month consultation, Fastmarkets will amend the silica, alumina and phosphorus base specifications of the index in response to an observed change in the specifications of Carajas fines. The amendment aims to realign the index base specifications to that of the Carajas fines to ensure the index specification remains representative of the ore grade it seeks to reflect.

The amendment is not anticipated to impact the index price level, as analysis suggests that any expected price impacts resulting from the change in impurity specifications balance out, that is, the rise in silica base specification is offset by the reduction in alumina and phosphorus base specifications.

The previous specifications of this index were:
Fe content: Base 65%, range 63.5-66%
Silica: Base 1.7%
Alumina: Base 1.5%
Phosphorus: Base 0.08%
Sulfur: Base 0.01%
Moisture: Base 9%

The amended specifications are:
Fe content: Base 65%, range 63.5-66%
Silica: Base 2.2%
Alumina: Base 1.4%
Phosphorus: Base 0.075%
Sulfur: Base 0.01%
Moisture: Base 9%

The amendment to Fastmarkets’ iron ore 65% Fe Brazil-origin fines index takes effect on Monday January 1, 2024.

To provide feedback on the index, or if you would like to provide price information by becoming a data submitter to this price, please email pricing@fastmarkets.com. Please add the subject heading “FAO: Jane Fan, re: Iron Ore 65% Fe Brazil-origin fines index.”

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

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