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The consultation sought to ensure that the specifications and methodology for our iron ore pricing continue to reflect the physical market. This includes all elements of our pricing process, our price specifications and publication frequency.
Full details of the prices covered by this consultation can be found here.
The consultation closed on February 26, with comments and feedback received suggesting that some material changes may indeed be required to the existing methodology. These included suggestions to launch a pellet premium index to 65% Fe fines on a cfr China basis. We also received feedback suggesting that our methodology for the incorporation of index-linked (often referred to as floating-price) spot activity may benefit from being refined.
In response to the suggestion of a pellet premium index, Fastmarkets is now initiating a two-month consultation proposing the launch of such a price.
In response to the latter suggestion of refining our processes for incorporating price information from index-linked spot activity, Fastmarkets has decided to extend this open consultation by one month to source more market feedback prior to deciding to launch a separate formal consultation on a potential change in its approach.
Fastmarkets will publish the outcome of this extension of its annual review by April 5, including a summary of the feedback unless marked as confidential. Any proposals to make material changes, discontinue or launch prices will involve a separate market consultation, the length of which will depend on how substantial the change is for the industry.
Beyond this extended consultation, Fastmarkets also invites feedback on a continuing basis throughout the year.
To provide comment or feedback on the content of the iron ore index methodologies, or if you would like to provide price information by becoming a data submitter to these indices, please email pricing@fastmarkets.com.
For feedback or comment related to iron ore, please add the subject heading “FAO: Peter Hannah, re: Iron Ore Methodology.”
To see all of Fastmarkets’ pricing methodology and specification documents, go to: https://www.fastmarkets.com/about-us/methodology.