PRICING NOTICE: Corrections to Fastmarkets’ Iron Ore Index Implied Pellet Premium historical data

Fastmarkets has identified several rounding discrepancies in its implied pellet premium historical prices between data published in the Excel file on the MB Iron Ore Index website; and those published in Price Book and distributed via the Excel Add-In.

The Fastmarkets MB CFR China Implied Pellet Premiums are derived figures that are calculated by subtracting the weekly averages of the Fastmarkets MB 65% Fe Brazil-origin iron ore fines index and of the 62% Fe iron ore fines index from the weekly 65% Fe CFR China Pellet Index.

The values were calculated with a difference of plus/minus 1 cent in the different databases on several occasions, depending on whether the weekly averages of the daily fines indices were rounded to two decimal places before being subtracted from the weekly pellet index, as per Fastmarkets’ policy. A handful of mismatches reflect errors in data entry.

The component indices from which the implied premiums are derived were correct on all occasions; a technical solution has now been implemented to avoid such mismatches in the future.

In all cases, the incorrect prices were those published in the Excel historical file downloadable from mbironoreindex.com. The historical file has now been changed to match the correct values published on the Price Book and via Fastmarkets’ Excel Add-In.

To provide feedback on these prices or if you would like to provide price information by becoming a data submitter, please contact Peter Hannah by email at: pricing@fastmarkets.com. Please add the subject heading ‘FAO: Peter Hannah, re: Fastmarkets MB Iron Ore Index Implied Pellet Premium.’

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