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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 tonneQuality: 94% of pellets <9.0mm; Fe content, base 67.5%; silica, base 1.5%; alumina, base 0.5%Quantity: Minimum 10,000 tonnesLocation: All origins, all destinationsUnit: USD per dry metric tonnePayment terms: Payment on sight, other terms normalized to basePublication: 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.