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.

What to read next
Due to a system error, the market price for June 2 was used twice in the calculation of the weekly average for AG-FML-0008 Feathermeal, fob US Delmarva Peninsula, $/short ton, resulting in an error. Fastmarkets’ pricing database has been updated to reflect this change. Incorrect weekly average for May 31-June 6: $185-270 per short tonCorrect weekly average […]
Following preliminary discussions with the market and interrogation of data collected by Fastmarkets over recent months, Fastmarkets now proposes to assess and publish the price for ferro-niobium, 63-67%, delivered consumer works, dp Europe, on Wednesdays and Fridays, from the current basis of once weekly on Wednesdays. This more frequent price assessment will enable Fastmarkets to […]
No feedback was received during the consultation period and therefore no changes will be made to the methodologies at this stage. This consultation sought to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes […]
Following the consultation, which closed on Thursday June 12, Fastmarkets will amend the frequency of Taiwan base metals premium and delivery timing for tin 99.99% ingot premium, with the first publication on a monthly frequency taking place on Tuesday July 1. The change in frequency will help to better reflect the dynamics in the Taiwan […]
The global steel industry’s move to decarbonize and China’s penchant for lower-grade ores in recent years have uncovered challenges for high-grade iron ore to live out its value in both the blast furnace-based steelmaking route and the direct-reduction iron process, delegates told Fastmarkets during the Singapore International Ferrous Week (SIFW), which takes place from May 26-30.
The global iron ore market, a pivotal component of the steelmaking industry, has historically been driven by simple supply and demand dynamics. However, steel trade tariffs, trade wars and a growing trend toward resource nationalism are reshaping this once-basic industrial staple. These forces, alongside rising environmental regulations and shifting trade patterns, are profoundly influencing iron ore pricing, production and consumption trends.