Iron Ore 62% Fe · Origin deep dive
62% Fe fines, CFR Qingdao (SGX-settled)
The seaborne reference all origins net back from
Qingdao, Caofeidian and Rizhao discharge berths — the benchmark's home.
62% Fe fines index basis; alumina and phosphorus penalties adjust individual cargoes.
CFR benchmark — all origins net back from this delivered price.
Chinese steel mills and traders; port-stock financing appetite moves premiums.
Restocking pulses ahead of construction seasons (Mar-Apr, Sep-Oct).
Chinese steel-output caps, property-sector demand, and port-stock overhangs.
Short freight leg to China — tightest netback
Port Hedland, Dampier and Cape Lambert — the world's largest bulk export complex.
Pilbara Blend 61-62% Fe and Newman fines; consistent spec at massive scale.
Capesize-only, ~7-day leg to China — the tightest netback in the trade.
Chinese mills on long-term contract plus index-linked spot; Japan, Korea legacy volumes.
Q1 cyclone season disrupts shipments; Q4 shipping push hits annual guidance.
Cyclones, Chinese demand policy, and new Simandou supply entering the market.
Long freight; Carajás 65% Fe trades at a quality premium over this
Tubarão and Ponta da Madeira (Carajás) — Vale's Atlantic export system.
Brazilian fines with the 65% Fe Carajás premium product above this quote.
Capesize and Valemax on the long Atlantic-to-Asia leg — freight is the story.
Chinese mills blending high-grade Carajás; European mills on the short leg.
Q1 rain season in Pará/Minas dents volumes most years.
Tailings-dam regulatory actions, rain disruptions, and the C3 freight route swings.
Low-grade discount widens when mills chase productivity
Mormugao anchorage transshipment off Goa's restarted mining belt.
58% Fe low-grade fines — discount widens when mills chase productivity with high grade.
Barge-to-anchorage transshipment onto Supramax/Panamax; monsoon shuts the operation.
Chinese sinter-feed blenders buying the discount when steel margins compress.
Oct-May shipping season; monsoon (Jun-Sep) closes the anchorage.
Indian mining-lease litigation, export-duty policy, and the low-grade discount cycle.