Launch of spot 67.5% Fe magnetite-hematite iron ore pellet feed premium differential

Following market consultation during which favorable feedback was received, Fastmarkets will launch a standalone premium differential index reflecting the average premium difference between magnetite and hematite materials in the 67.5% Fe pellet feed index.

This new launch aims to satisfy demand from market participants to more clearly and transparently track the premium differential that magnetite and hematite materials can achieve over 65% Fe fines index on a CFR China spot basis, where they are most commonly traded with a fixed premium negotiated to the Fastmarkets 65% Fe fines index.

China’s growing appetite for higher-quality iron ore, including pellet feeds, is leading to an increase in the frequency of pellet feed cargoes being sold on this basis, and market participants are paying more attention to the price difference of different materials within the high-grade pellet feed index.

The specifications for the magnetite-hematite pellet feed premium differential index are as follows:

MB-IRO-0190: Iron ore spot 67.5% Fe magnetite-hematite pellet feed price differential, cf Qingdao
Quality: Fe content base 67.5%, range 66%-70%; silica base 3%, max 6%; alumina base 0.5%, max 1.5%; phosphorus base 0.02%, max 0.06%; sulfur base 0.03%, max 0.10%, titanium base 0.05%, max 0.30%; moisture base 8.0%/DM, max 11.0%/DW; granularity max size >80%<0.15mm
Quantity: Minimum 10,000 tonnes
Location: cfr Qingdao – normalized for any Chinese mainland seaport
Timing: Delivery within 8 weeks
Unit: USD/tonne
Payment terms: Letters of Credit on sight – other payment terms normalized
Publication: Daily at 6.30pm Singapore time
Notes: All origins. Premium quoted above Fastmarkets’ 65% Fe Brazil-origin fines index.

To provide feedback on this launch, or if you would like to provide price information by becoming a data submitter, please contact Fastmarkets’ iron ore team by email at alice.li@fastmarkets.com / norman.fong@fastmarkets.com / shuyi.zheng@fastmarkets.com. Please add the subject heading ‘FAO: Iron ore team, re: Launch of Magnetite and Hematite Premium Differential Index’.

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