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Launch of DR-grade iron ore pellet premium weekly indicator

After a consultation period, Fastmarkets has launched a weekly indicator for direct-reduction (DR)-grade iron ore pellet premiums, known as the iron ore DR-grade pellet premium indicator, $ per tonne.

December 1, 2022
By Ross Yeo
Pricing notice

The new assessment is designed to provide an indication of the theoretical price and market sentiment in the DR-grade pellet market, which operates via long-term contracts, with premiums settled on a quarterly basis.

The indicator has been launched alongside the existing assessment of the iron ore DR-grade pellet premium to 65% Fe fines index, Middle East reference, which reflects the quarterly contract price.

The specifications of the new assessment are as follows:

MB-IRO-0186 Iron ore DR-grade pellet premium indicator, $ per tonne
Quality: 94% of pellets <9.0mm; Fe content, base 67.5%; silica, base 1.5%; alumina, base 0.5%
Quantity: Minimum 10,000 tonnes
Location: All origins, all destinations
Unit: USD per dry metric tonne
Payment terms: Payment on sight, other terms normalized to base
Publication: Wednesdays, 4pm UK time.

DR-grade pellet premiums are quoted over the index for iron ore 65% Fe Brazil-origin fines, cfr Qingdao.

To provide feedback on this price, or if you would like to provide price information by becoming a data submitter to this price, please contact Marina Shulga by email at: pricing@fastmarkets.com. Please add the subject heading ‘FAO: Marina Shulga, re: DR grade iron ore pellet premium indicator.’

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

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