Iron Ore Fines

Iron ore fines are the most traded seaborne iron ore product, with particle sizes below 6.3mm. They are sintered before being charged into blast furnaces for pig iron production. The benchmark Platts IODEX (62% Fe CFR China) is the global reference price for iron ore fines.

Start Trading Iron Ore Fines
62% Fe58% Fe65% Fe (Premium)56% FeCFRFOBCIF
Quick Facts

Iron Ore Fines at a Glance

Common Origins
AustraliaBrazilSouth AfricaIndiaCanada
Common Destinations
ChinaJapanSouth KoreaEuropeTaiwan
Grades & Specifications
62% Fe58% Fe65% Fe (Premium)56% Fe
INCOTERMS
CFRFOBCIF
Unit of Measure
Wet Metric Tons
Price Drivers

What Moves Iron Ore Fines Pricing

Iron ore fines price off the Platts IODEX 62% Fe CFR China benchmark, with low-alumina (LA62) and 65% high-grade variants commanding premiums and discounts. The CFR-FOB Brazil spread captures freight; the C3 (Tubarão-Qingdao) capesize freight rate is the most-watched lane. Chinese steel mill margins (the 'rebar-iron ore spread') drive demand. Vale's Carajás and Brucutu, BHP and Rio Tinto's Pilbara mines set marginal seaborne supply.

Contract Structure

How Iron Ore Fines Cargoes Are Priced and Settled

Standard cargoes are 170,000-200,000 tonnes capesize. Pricing is index-linked (62% Fe CFR Qingdao) with quotational period typically the month of B/L. Payable Fe formula determines value: linear $/% Fe within a contractual range. Phosphorus, alumina, silica penalties apply against contractual maxima.

Quality & Disputes

Iron Ore Fines Specifications and Dispute Practice

Disputes turn on Fe content (typical 60-65% range), moisture, alumina, silica, and phosphorus. Independent draft survey at load and discharge is universal. The big swing factor is moisture — wet cargoes during Brazilian rainy season can lose 2-3% mass between load and discharge.

Trade Flows

Where Iron Ore Fines Comes From and Where It Goes

Australia (Pilbara — BHP, Rio Tinto, FMG, Hancock) and Brazil (Vale) supply ~80% of seaborne iron ore. Receiver dominance is extreme: China imports ~75% of global seaborne tonnage. India, Japan, Korea, Taiwan, and EU mills are next-tier buyers. The Simandou project in Guinea, when fully ramped 2026-2027, will reshape the high-grade segment.

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