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
close up of car wheel in automobile manufacturing factory assembly line, USA
Automotive sector steel demand at risk in UAW strike at American Axle: analysts
A United Auto Workers (UAW) strike at the American Axle factory in Three Rivers, Michigan, that began on Monday June 1 could lead to reduced demand for automotive steel if not resolved quickly, but analysts disagree on whether it will ultimately have a significant impact.
June 8, 2026
 · 
By Robert England
Steel, Architecture, Building
Mexico-EU agreement may boost steel trade, but US to remain Mexico’s preferred partner
The newly signed Mexico-EU (EU) trade deal could signal a shift in steel trade toward the EU, but Mexican steelmakers will still prefer trade within North America, a steel producer told Fastmarkets.
June 3, 2026
Fastmarkets changes frequency of normalization coefficient for daily iron ore indices: pricing notice
Under the change, Fastmarkets will update the normalization coefficient for its Iron ore 61% Fe fines, cfr Qingdao and Iron ore 62% Fe fines, cfr Qingdao indices on a daily basis, from Tuesday. This allows the coefficient to better reflect daily price movements. The normalization coefficient was previously updated on a monthly basis. The decision […]
June 2, 2026
 · 
By Fastmarkets pricing team
Iron Ore Mining
EU demand for Ukrainian steel holds firm despite CBAM pressure, but wartime supply challenges persist
European buyers were still seeking Ukrainian steel despite the recent rollout of the EU’s Carbon Border Adjustment Mechanism, but constraints on production during wartime were preventing mills from fulfilling the demand, the industry said.
May 27, 2026
 · 
By Fastmarket team
Steel, Coil, Spiral
VinMetal partners Primetals on Ha Tinh steel complex
Vingroup Corp subsidiary VinMetal and UK-based Primetals Technologies have signed a memorandum of understanding (MoU) on Thursday May 7 to cooperate on the development of VinMetal’s high-tech integrated steel complex in Vietnam’s Ha Tinh province, according to local media reports.
May 27, 2026
 · 
By Malvick Ong
Person, Construction, Construction Crane
El Niño threat sharpens strategic value of aluminium and steel scrap in Europe
A developing El Niño weather pattern is drawing fresh attention across European metals markets at a moment when the continent‘s energy infrastructure is already under acute stress – and for producers and traders in secondary aluminium and ferrous scrap, the implications are hard to ignore.
May 21, 2026
 · 
By Declan Conway