Brokerage & Commodities

Iron Ore: Technical Data Sheet & Sourcing

Access international specifications for iron ore (standard 62% Fe Fines, sized Lump ore, Direct Reduction Pellets) and facilitate matchmaking between mining companies, international traders, and steel manufacturing complexes.

Contract Types

Spot Sales, Long-Term Agreements (LTA) & Platts/SGX Indexing
Benchmark Fe Grade

Standard 62% Fe (Fines) / High Grade 65% Fe / DRI Pellets 67% Fe
Main Hubs

Qingdao, Port Hedland, Tubarão, Singapore (SGX), Dalian (DCE)

Definition & Standards

What is Iron Ore?

The Iron Ore Iron Ore is the essential raw material for pig iron and steel production. Mainly composed of iron oxides (hematite Fe₂O₃ and magnetite Fe₃O₄), it is extracted and processed into distinct physical forms suitable for blast furnace (BF) or direct reduction (DRI/HBI) steelmaking processes.

The global trading benchmark for physical transactions is fine ore with 62% iron content (62% Fe Fines CFR China / IODEX). Sized lump ore and pellets offer superior added value by reducing sintering energy costs.

Standard Specifications Fines (62% Fe Basis)

Iron Content (Fe)62.00% Base (Penalty/Premium under/over 62%)

Silica (SiO₂)4.50% Max.

Alumina (Al₂O₃)2.20% Max.

Phosphorus (P)0.075% Max.

Moisture Content8.00% Max.

Sizing< 10 mm (Fines) | 6-30 mm (Lump) | 9-16 mm (Pellets)

Global Market

Major Producing Countries & Demand

Seaborne iron ore trade is heavily concentrated around Southern Hemisphere mining giants and Asian consumers:

Australia (Pilbara): World's leading exporter (Rio Tinto, BHP, Fortescue) supplying mainly Fines and Lump to Asia.
Brazil (Carajás / Minas Gerais): Second largest global exporter (Vale), famous for its high-grade ore (IOCJ 65% Fe) highly sought after to reduce blast furnace emissions.
China: World's leading importer, absorbing over 70% of global seaborne iron ore to feed its steel industry.
South Africa, Canada & India: Key suppliers of premium quality Lump and concentrates for Pellet manufacturing.

Procedures & Logistics

Price Indexing, Capesize Shipping & Inspection

Due to the huge volumes transported by sea, trading mechanisms and shipping strictly comply with established rules:

Spot & Futures Indexing

Pricing based on daily Platts IODEX 62% Fe CFR China, Fastmarkets, or Argus indices, linked to SGX (Singapore) and DCE (Dalian) futures contracts.

Capesize Bulk Transport

Shipments handled almost exclusively by giant Capesize bulkers (170,000 to 220,000 metric tons) or VLOCs (Valemax 400,000 metric tons) under CFR or FOB Incoterms.