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
Fastmarkets confirms the amendment of five of its steel products assessments and steel billet index originated from the Black Sea.
Fastmarkets is launching a US green steel differential to hot-rolled coil and an accompanying US green steel base price. The launch is targeting growing interest from the auto sector and elsewhere in a low-carbon-emission HRC option. It complements differentials and base prices in Europe and Asia.
For comments and queries, please email hello.foex@fastmarkets.com, indicating “PIX Pellet Nordic Index” in the subject line of the email.
Fastmarkets invited feedback from the industry on the methodology for its audited lithium and spodumene price assessments, via an open consultation process between April 18 and May 17, 2024. This consultation was done as part of our published annual methodology review process.
Fastmarkets proposes to amend the payment terms and quantities of three hot- and cold-rolled coil import price assessments for the United Arab Emirates and Saudi Arabia.
Random Lengths has concluded its industry consultation, will add delivered Dallas fingerjointed stud prices and make changes to veneer reporting.