| Element | Baseline |
|---|---|
| Iron (Fe) | 62% |
| Moisture | 4% |
| Silica (SiO2) | 3.5% |
| Alumina (Al2O3) | 1.7% |
| Phosphorus (P) | 0.09% |
| Sulphur (S) | 0.02% |
Platts moved its lump baseline from 62.5% to 62% Fe in January 2026 and raised the alumina and phosphorus baselines. The lump premium is assessed over a strip of 61% Fe fines.
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| Element | Base | Range or maximum |
|---|---|---|
| Iron (Fe) | 62% | 60 to 63.5% |
| Silica (SiO2) | 4.0% | Maximum 8.0% |
| Alumina (Al2O3) | 2.3% | Maximum 4.0% |
| Phosphorus (P) | 0.10% | Maximum 0.15% |
| Moisture | 8.0% | Maximum 10.0% |
Index publishers revise these specifications as the products on the market change, and Fastmarkets later proposed new base specifications for this index. Check the current notice before relying on the figures.
How iron ore is priced
The reference point is 62% Fe fines delivered to north China, published daily by price reporters. A cargo that assays above 62% Fe earns a premium per percentage point and one below it takes a discount, and the cargo is then charged or credited for silica, alumina, phosphorus and moisture against the base specification.
The adjustment rates are published by the price reporters and move with the market, so they are not a fixed number to quote. Ask which publisher's differentials the contract uses, and for which month.
The reference grade is shifting. Reports say mined grades have declined, and Platts and SGX announced that the benchmark for their futures changes from 62% Fe to 61% Fe for contracts expiring from January 2026, while Argus launched a 61% Fe index alongside its 62% benchmark. Name the benchmark grade in the contract, not just the iron ore price.
Lump, fines and pellets
Fines are the small ore that is sintered before it goes into the blast furnace. Lump is coarser ore that can be charged directly, so it sells at a premium to fines. Platts assesses that premium over a strip of 61% Fe fines, and the January 2026 baseline update shows how benchmarks are reset when the products on offer change.
Why fines can liquefy at sea
Iron ore fines are classed as a Group A cargo under the IMSBC Code: if loaded with moisture above its transportable moisture limit, the cargo can liquefy and shift. The Code requires the shipper to give the master a declaration that includes the transportable moisture limit and the moisture content at shipment, and for Group A cargoes a signed certificate of each.
That is a safety rule and also a commercial one: the moisture figure on the declaration, the moisture figure used for the price, and the moisture the cargo actually carries should be consistent.
Where the ore comes from
For production, reserves and the link between iron ore and steel, see the steel and iron ore profile in the library. USGS reports on iron ore each year and is the source for the price figures above.
Related calculators
Frequently asked questions
What is the iron ore benchmark price?
The reference is 62% Fe fines delivered to China, published daily by price reporters such as Platts and Fastmarkets. USGS reports it averaged about $99 per tonne in the first nine months of 2025.
What does 62% Fe mean?
It is the base iron content of the benchmark product. Cargoes with more iron earn a premium and cargoes with less take a discount, with further adjustments for impurities.
Which impurities are penalised in iron ore?
Silica, alumina, phosphorus and sulphur, and moisture is also specified. Each index sets a base level and a maximum, and contracts set the penalty rates.
What is a lump premium?
The premium lump ore earns over fines because it can be charged directly into a blast furnace. Platts assesses it over a strip of 61% Fe fines.
Why can iron ore fines liquefy on a ship?
Fines loaded above their transportable moisture limit can turn from a solid into a liquid under the motion of the ship, which is why they are classed as Group A cargoes and need moisture declarations before loading.
Sources
- USGS Mineral Commodity Summaries 2026: Iron Ore
- Platts: updates to seaborne CFR China iron ore lump quality specifications (January 2026)
- Mining.com: explaining the iron ore grade shift
- Argus: what do changing iron ore grades mean for the pricing mechanism
- Fastmarkets: amendment of specifications for the 62% Fe iron ore port index
- Hill Dickinson: cargo liquefaction and Group A or Group C classification
- UK MCA Marine Guidance Note 511 (IMSBC Code shipper's documents)
Specifications published by index providers are revised over time. Where a figure comes from a pricing notice, confirm the version currently in force with the publisher before you use it in a contract. Corrections are welcome.