PRICING NOTICE: Launch of iron ore 67.5% Fe pellet feed indices

Fastmarkets launches two daily indices to reflect the spot price of high-grade 67.5% Fe pellet feed products sold on a CFR China basis on Wednesday February 1

After a consultation period, Fastmarkets has launched a daily iron ore 67.5% Fe pellet feed premium index to track the fixed premium quoted above Fastmarkets 65% Fe Brazil-origin fines index, and a corresponding daily iron ore 67.5% Fe pellet feed index to reflect the outright price of high-grade pellet feed products.

During the consultation period, market participants opined that transparent spot indices would be beneficial for the market because they serve as both a reference point for prices and a pricing tool for settling high-grade pellet feed product transactions.

Materials falling within the specification range detailed below can be included in the calculation of the indices and normalized to index base specifications.

The specifications of the new indices are as follows:

MB-IRO-0187: Iron ore 67.5% Fe pellet feed premium, cfr Qingdao, $/tonne

  • 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: Min 10,000 tonnes
  • Location: cfr Qingdao – normalized for any Chinese mainland seaport
  • Timing: Delivery within 8 weeks
  • Unit: USD/tonne
  • Publication: Daily at 6.30pm Singapore time

Notes: All origins. Premium quoted above Fastmarkets 65% Fe Brazil-origin fines index.

MB-IRO-0188: Iron ore 67.5% Fe pellet feed, cfr Qingdao, $/tonne

  • 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: Min 10,000 tonnes
  • Location: cfr Qingdao – normalized for any Chinese mainland seaport
  • Timing: Delivery within 8 weeks
  • Unit: USD/tonne
  • Publication: Daily at 6.30pm Singapore time

Notes: All origins.

Fastmarkets’ index methodology screens outliers and applies a quantity-weighted model to ensure that the index is the most robust in the industry. Fastmarkets has no financial interest in the level or direction of the index.

To provide feedback on this index, or if you would like to provide price information by becoming a data submitter to this index, please email pricing@fastmarkets.com with the subject heading “FAO: Jane Fan, re: 67.5% Fe Iron Ore Pellet Feed Index.”

To learn more about Fastmarkets’ pricing methodology and to view all of our specification documents, visit our methodology page.

What to read next
Fastmarkets has corrected its MB-ALU-0002 alumina index, fob Australia and its MB-ALU-0010 alumina inferred index, fob Brazil, which were published incorrectly on Monday March 18.
The publication of Fastmarkets’ US base metals prices were published early during the week of March 11-15 following the daylight saving time change in the US on March 10.
Fastmarkets has corrected its fob Australia premium hard coking coal index, which was published incorrectly on Monday March 18 due to a technical error.
Fastmarkets wishes to clarify details around the following aspects of the pricing methodology for its MB-STE-0073 steel reinforcing bar (rebar) export, fob main port Southern Europe assessment.
Fastmarkets proposes to increase the publishing frequency of its Pakistan shredded steel scrap import index from weekly to twice per week.
Following an initial 30-day consultation period, Fastmarkets has elected to extend the consultation period to amend the frequency of its US Midwest low-carbon aluminium differentials to allow for further feedback from the industry.