Metal Bulletin Launches New 58% Fe Iron Ore Index and Premium
19th December 2011
Metal Bulletin today announced that it will publish two new reference prices for the iron ore physical market. A new Iron Ore Index, basis 58% iron content, delivered Qingdao, and also a Premium to the 58% Fe Index for high grade, low alumina and phosphorous material.
The new Index and Premium addresses the requirement in the market for an independent and accurate representation of the international iron ore spot market.
The Metal Bulletin 58% Fe Iron Ore Index (MBIOI-58) utilises daily price data from a broad spectrum of industry participants and widespread contact base of steel producers and iron ore traders across China via Shanghai Steelhome. MBIOI is the world’s only iron ore index with access to such data from a major Chinese source. The MBIOI-58 is a tonnage weighted calculation of actual physical transactions, normalised to 58% Fe, CFR Qingdao and is published daily at midday London time.
The Premium (MBIOI-58P) shows the price differential of the high grade material, with alumina at 1.5% and phosphorous at 0.05%, from the commodity grade 58% Fe material on a delivered Qingdao basis, and is also published daily.
Cameron Hunt, Director - MB Index, said. “The new Index will bring transparency and accuracy to this growing market. Metal Bulletin’s unique market balancing mechanism ensures that the Index reflects the underlying market without bias or influence.”