Proposal to amend iron ore 63% Fe Australia-origin lump ore premium index specifications

Fastmarkets’ index for iron ore 63% Fe Australia-origin lump ore premium, cfr Qingdao, US cents/dmtu, tracks the spot prices of Australian-origin iron ore lumps in the CFR China spot market within the index specification range, including Pilbara Blend Lump and Newman Lump.

Fastmarkets proposes to amend the Fe base specification and index name of the index to ensure the index specification remains representative of the lump ore grade it seeks to reflect.

The proposed amendment is not anticipated to impact the index price level.

The proposed specifications for the premium index will be as follows (proposed change in the premium index name and Fe content base):

MB-IRO-0010 Iron ore 62.5% Fe Australia-origin lump ore premium, cfr Qingdao, US cents/dmtu
Quality: Fe content base 62.5%, range 61-65%; silica base 3.5%, max 5%; alumina base 1.5%, max 2%; phosphorus base 0.08%, max 0.10%; sulfur base 0.02%, max 0.04%; loss on ignition(%DW) base 5%; moisture base 4%, max 6.5%; granularity max 13.5%<6.3mm, max 25% >31.5mm
Quantity: Min 30,000 tonnes
Location: cfr Qingdao, normalized for any Chinese mainland seaport
Timing: Within 2-8 weeks
Unit: US cents/dmtu
Payment terms: Letters of Credit on sight, other terms normalized to base
Publication: Daily at 6:30pm Singapore time
Notes: Origin Australia only. Data history from May 2013

This index is part of the Fastmarkets steel raw materials prices package.

The consultation period for this proposed amendment starts on Tuesday August 13 and concludes on Friday September 13.

The proposed amendment of Fe base and index name will take place from Wednesday September 18, subject to the outcome of this consultation.

To provide feedback on this index or if you would like to provide price information by becoming a data submitter to this index, please contact Alice Li by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Alice Li, re: Iron ore 63% Fe Australia-origin lump ore premium.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.