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 amended the name of MB-AL-0231 Aluminium P1020A all-in price, delivered Midwest US, US cents/lb as of Wednesday July 17.
The publication of Fastmarkets’ CIS steel slab, wire rod, hot-rolled and cold-rolled coil assessments was postponed by one day due to a public holiday in Ukraine on Monday July 15.
The publication of Fastmarkets’ price assessments for MB-STE-0093 Turkey domestic auto bundle scrap and MB-STE-0094 Turkey domestic melting scrap from shipbreaking for June 17 were delayed due to a reporter error.
The publication of Fastmarkets’ MB-STE-0887 steel scrap shredded, index, import, cfr Port Qasim, Pakistan was delayed on Tuesday July 16 due to a technical error.
Fastmarkets has corrected its MB-MNO-0001 manganese ore high grade index, cif Tianjin, $ per dmtu, which was published incorrectly on Friday July 12.
Fastmarkets proposes to launch FOB Indonesia, Vietnam and India inferred indices for its Australian alumina index.