Get started

Direct-reduced iron ore pellet premium falls at the start of October on oversupply

The premium for direct-reduced (DR) iron ore pellet for shipment in October-December has dropped, mainly on oversupply, sources said in late September

October 6, 2022
By Marina Shulga
Iron Iron ore Steel raw materials

Most buyers have secured their DR pellet supply in the fourth quarter with a premium of $75.60 per tonne, a decline of $19.40 per tonne from the previous quarter.

“The premium went down that much amid higher supply, from Samarco and Ferrexpo mainly, while demand is not good,” one buyer from North Africa said.

The larger supply caused greater availability in the spot market, another source said.

Sources have estimated the premium in the spot market to be $60-65 per tonne.

In September, the premium remained at $95 per tonne.

Fastmarkets’ monthly assessment of the iron ore DR-grade pellet premium to 65% Fe fines index, Middle East reference was $95 per tonne on Friday September 30, unchanged from a month on month.

Fastmarkets’ calculation of the index for iron ore, 65% Fe Brazil-origin fines, cfr Qingdao which has been used as the basis for DR pellet premium contracts since 2019, averaged $110.70 per tonne in September, down by 5.81% from an average of $117.53 per tonne in August.

What to read next
Open consultation on Fastmarkets’ iron ore 61% Fe fines index specifications: pricing notice
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 […]
July 10, 2025
 · 
By Shu Yi Zheng
Architecture, Building, Factory
Charcoal-based pig iron may support decarbonization in EU
Charcoal-based pig iron can potentially support decarbonization strategies in the EU, despite not being widely used in the region, delegates were told at Fastmarkets' International Iron Ore & Green Steel Summit, held June 17-19 in Barcelona.
July 7, 2025
 · 
By Marina Shulga
Proposal to amend Fastmarkets’ iron ore 65% Fe Brazil-origin fines index specifications
Following an initial consultation with the market and a review of the typical data sets that have been collected over recent months, Fastmarkets is proposing changes to the specifications of the index for MB-IRO-0009 iron ore 65% Fe Brazil-origin fines, cfr Qingdao, by raising the silica base specification to 2.7% from 2.2%, as well as an […]
July 4, 2025
 · 
By Norman Fong
Outdoors, Nature, Countryside
West needs clear policies, China cooperation for lithium success
The US and Europe must adopt long-term, consistent policies and should learn lessons from China, according to lithium industry experts speaking at Fastmarkets’ Lithium Supply and Battery Raw Materials Conference in Las Vegas, US, over June 22-25.
July 4, 2025
 · 
By Fleur Ritzema
Launch of Indonesian 65/63% CSR coke price assessment: pricing notice
Following a month-long consultation period which took place between May 26-June 23, Fastmarkets will launch the weekly price assessment to better reflect the Indonesian coke market, given that the country has been a key exporter of coke worldwide since 2023. The price specifications are as follows: MB-COA-0009 Coke 65/63% CSR, fob IndonesiaQuality: 65/63% CSR, 12.5% max Ash, 0.65% max […]
July 1, 2025
 · 
By Bella Cheng
Correction to rationale of Iron ore 61%, 62% and 62% Fe low-alumina fines, CFR Qingdao
The fixed-price equivalent in the trade log in these indices’ rationale was missed. The trade log entry has been corrected as follows: Vale, COREX, 170,000 tonnes of 62% Fe Brazilian Blend fines, traded at the July average of Fastmarkets’ 62% Fe low-alumina fines plus a premium of $0.40 per tonne, laycan July 17-26 (fixed-price equivalent […]
June 23, 2025
 · 
By Alice Li