Proposal to amend Fastmarkets’ 62% Fe Iron Ore Port Index specifications

Fastmarkets is proposing to amend the index specifications of its 62% Fe iron ore port index to more closely reflect the chemical composition of mainstream mid-grade ores produced from Australia’s Pilbara region.

Fastmarkets proposes to amend the silica and alumina base specifications of its index for iron ore 62% Fe fines, fot Qingdao, yuan/wet tonne [MB-IRO-0011] and its corresponding currency converted index iron ore 62% Fe fines, fot Qingdao, $/tonne conversion [MB-IRO-0022].

The current chemical specifications of this index are:

Fe content: Base 62%, range 60% to 63.5%
Silica: Base 3.5%, maximum 8.0%
Alumina: Base 2.0%, maximum 4.0%
Phosphorus: Base 0.10%, maximum 0.15%
Sulphur: Base 0.02%, maximum 0.06%
Moisture: Base 8.0%, maximum 10.0%

The proposed new specifications would be:

Fe content: Base 62%, range 60% to 63.5%
Silica:Base 4.0%, maximum 8.0%
Alumina:Base 2.3%, maximum 4.0%
Phosphorus: Base 0.10%, maximum 0.15%
Sulphur: Base 0.02%, maximum 0.06%
Moisture: Base 8.0%, maximum 10.0%

The proposed changes of the silica and alumina base specifications aim to more closely reflect the chemical composition of mainstream mid-grade ores produced from Australia’s Pilbara region.

In the calculation of the index, price data of material with specifications different from that of the index base specification is normalized using in-house developed models based on regression analysis. The proposed changes of base specifications are intended to increase the predictability of the index calculation by helping reduce the degree of normalization required to adjust prices for the most liquid Australian mid-grade products to the index base specification.

All other chemical and physical specification details outside of silica and alumina base levels would remain unchanged under this proposal.

The consultation period for the proposal starts on Monday October 3, 2022, and will end on Monday October 31, 2022. The amendment will then take place, subject to market feedback, on Tuesday November 1, 2022.

To provide feedback on the proposal, or if you would like to provide price information by becoming a data submitter to this price, please email pricing@fastmarkets.com with the subject heading “FAO: Jane Fan, re: Iron Ore 62% Fe Port Index”.

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

What to read next
The publication of Fastmarkets’ AG-PLM-0019 refined bleached deodorised (RBD) palm olein, cfr South China assessment for Thursday July 24 was delayed due to a reporter error. Fastmarkets’ pricing database has been updated.
Fastmarkets has launched a MB-STE-0935 Steel reinforcing bar (rebar), differential to shredded auto scrap Chicago, fob mill US, $/gross ton to complement its existing suite of steelmaking raw materials to finished product differentials on Wednesday July 23. This strategic launch is designed to offer the market a single reference price denoting the differential between steel […]
The following prices were affected:MB-BI-0001 bismuth 99.99% Bi min, in-whs Rotterdam, $ per lbMB-CD-0001 cadmium 99.95% min, cif global ports, cents per lbMB-CD-0002 cadmium 99.99% min, cif global ports, cents per lb. These prices are part of Fastmarkets’ minor metals package. For more information, or to provide feedback on the delayed publication of these prices, or if you […]
After a consultation period from June 20 to July 18, Fastmarkets made the decision to discontinue these assessments because the outright prices no longer reflect market conditions, with the market shifting toward payables as the dominant pricing method. The affected prices are:MB-NIO-0003 nickel mixed hydroxide precipitate outright price, cif China, Japan and South Korea, $ per tonneMB-NIO-0005 nickel […]
The publication of Fastmarkets’ MB-CO-0004 cobalt alloy grade, in-whs Rotterdam and MB-CO-0005 cobalt standard grade, in-whs Rotterdam assessments for Wednesday July 23 was delayed because of a system error. Fastmarkets’ pricing database has been updated.
On reviewing the methodology specifications, Fastmarkets is proposing to update the quantity, location and payment terms of the price. The specifications would be as follows, with amendments in italics: MB-SI-0003 silicon, ddp US, US cents per lbQuality: Si: 98.50%, Fe: 0.50%, Al: 0.50%, Ca: 0.30%Quantity: Min 20 tonnesLocation:ddp USUnit: US cents per lbPayment terms: 30 days, other terms normalizedPublication: Weekly, Thursday 4-5pm […]