12th October 2012
Metal Bulletin today announced that it will publish a new reference price for the iron ore physical market‐ an Iron Ore Index, basis 66% iron content concentrates delivered Qingdao.
The new Index addresses the requirement in the market for an independent and objective representation of the international iron ore concentrate spot market.
The Metal Bulletin 66% Concentrate (MBIOI‐CO) utilises transaction data from miners, steel mills and traders, and also via Shanghai Steelhome. MBIOI is the world’s only iron ore index with access to such data from a major Chinese source.
The MBIOI‐CO is a tonnage weighted calculation of actual physical transactions, normalised to 66% Fe, CFR Qingdao utilising the value‐in‐use of different grades as defined by the market, and prevailing freight rates. The Index uses highly‐regarded mechanisms to balance the different sides of the market, to minimise any potential bias, and remove outliers.
The Index is published weekly on Friday, at midday London time.
Cameron Hunt, Director‐MB Index, said. “The MB Concentrate Index is unique in the market, and will bring a new level of transparency and objectivity to an increasingly important market segment. A significant percentage of global capacity increases will be shipped as concentrate or pellet. The new Index reflects the commitment of MB to publishing the most objective and sophisticated representation of iron ore spot prices available to the market.”
To see the latest iron ore indices please visit www.mbironoreindex.com