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Following a recent proposal to amend the specifications of the MB-IRO-0009 iron ore 65% Fe Brazil-origin fines, cfr Qingdao index – specifically, the increase in the silica base specification from 2.2% to 2.7% – Fastmarkets will introduce the high-grade iron ore, 0.5% Si VIU, cfr Qingdao index.This new index is designed to support the market’s transition and provide participants with a reference point for deriving trade values under the updated IOCJ specification.
The high-grade iron ore silica Value-In-Use (VIU) is calculated through regression analysis, using price inputs and chemical compositions of high-grade iron ore products. This market-based VIU approach incorporates both pricing data and associated chemical specifications to reflect the relative impact of silica content on high-grade iron ore values.
The price specifications are as follows:
MB-IRO-0192 High-grade iron ore, 0.5% Si VIU, CFR Qingdao, $/tonneSilica Value-In-Use adjustments (Si-VIU)Calculated from data in the 63-70% Fe range
Optimized range: 1-8.5%
Location: cfr Qingdao, normalized for any Chinese mainland sea portTiming: Within two weeksUnit: $/tonnePayment terms: Payment at sight, other terms normalized to basePublication: Daily at 6.30pm Singapore timeNotes: All origins.
These prices will be part of the Fastmarkets steelmaking raw materials package.Fastmarkets’ index methodology screens outliers and applies a quantity-weighted model to ensure that the Iron ore 61% Fe fines, CFR Qingdao, $/tonne is the most robust in the industry. Fastmarkets has no financial interest in the level or direction of the index.
To provide feedback on the index or if you would like to provide price information by becoming a data submitter to this index, please contact Norman Fong by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Adele Pan/ Paul Lim, re: High-grade Iron ore Si VIU index.”Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.To see all Fastmarkets’ pricing methodology and specification documents go to https://www.fastmarkets.com/about-us/methodology.