Proposal to amend value-in-use adjustments for iron, silica, alumina and phosphorus indices: pricing notice

Following an initial consultation under the ongoing review of Fastmarkets’ iron ore 62% Fe fines index name and specifications, Fastmarkets is proposing changes to the name and specifications of the Fastmarkets value-in-use adjustment values.

The new specifications would be as follows, with amendments in italics:

MB-IRO-0018 Iron ore 61% fines, % Fe VIU, cfr Qingdao, $/tonne
Iron Value In Use adjustments (Fe -VIU)
Value of Iron Ore at X% Iron =MBIOI61 + (% Fe
difference from 61% * Fe-VIU Index)
Calculated from data in the 60-63% Fe range
Optimised range: 60-63% Fe
Data history from: July 2012

MB-IRO-0019 Iron ore 65% Fe fines, % Fe VIU, cfr Qingdao $/tonne
Value of Iron Ore at X% Iron =MBIOI-65-BZ + (% Fe
difference from 65% * 65 Fe -VIU Index)
Calculated from data in the 63.5-66% Fe range
Optimised range: 63.5-66% Fe
Data history from January 2015

MB-IRO-0020Iron ore fines, Si VIU, cfr Qingdao, $/tonne
Silica Value In Use adjustments (Si-VIU)
Value of Iron Ore at X% Silica= MBIOI61 + (% Si
difference from 4% * Si-VIU Index)
Calculated from data in the 60% -63% Fe range
Optimised range: 3.5-9.0%
Data history from December 2013

MB-IRO-0021Iron ore fines, Al2O3 VIU, cfr Qingdao, $/tonne
Alumina Value In Use adjustments (AI-VIU)
Value of Iron Ore at X% Alumina= MBIOI61 + (% Al
difference from 2.3% * Al-VIU Index)
Calculated from data in the 60.0% -63% Fe range
Optimised range: 1.0-3.5%
Data history from November 2014

MB-IRO-0024Iron ore fines, P VIU, cfr Qingdao, $/tonne
Phosphorous Value In Use adjustments (P-VIU)
Value of Iron Ore at X% Phosphorus= MBIOI61 +
(0.01% P difference from 0.10% * P-VIU Index)
Calculated from data included in the MBIOI-61
Optimised range: 0.04-0.13% P
Data history from October 2015

These prices are a part of the Fastmarkets steelmaking raw materials package.

The consultation period for this proposed amendment starts from May 5 and will end on June 3. The amendment will then take place, subject to market feedback, on June 9.

To provide feedback on the proposal or if you would like to provide price information by becoming a data submitter to the index, please email pricing@fastmarkets.com. Please add the subject heading “FAO: Norman Fong, re: Iron ore VIUs.”

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/about-us/methodology.