WHAT IS IT?
Iron ore is a rock and mineral from which metallic iron can be extracted. It is the primary raw material in steelmaking — without iron ore there is no steel. The ore is smelted in a blast furnace with coke (coal-derived carbon) to produce pig iron, which is then refined into steel.
TYPES
Fines (62% Fe): Small particles, most commonly traded form. Fed into sinter plants before blast furnace.
Lump (62–65% Fe): Larger particles, can be charged directly into blast furnace. Commands premium.
Pellets (65–67% Fe): Iron ore fines agglomerated into balls, pre-reduced. Highest quality, highest premium. Used in direct reduction (DRI/HBI).
Concentrate: Finely ground high-grade ore, 65–72% Fe.
IRON CONTENT (Fe%) — THE KEY QUALITY METRIC
Higher Fe% = more iron per tonne = more efficient smelting
62% Fe is the benchmark grade
Premium for 65%+, discount for below 60%
STEEL PRODUCTION PROCESS
Iron ore + coke → Blast Furnace → Pig iron → Basic Oxygen Furnace → Steel
OR
Iron ore pellets → Direct Reduction Furnace (DRI) → Electric Arc Furnace → Steel
TRADE CORRIDORS
Major exporters: Australia (45% of global trade), Brazil (25%), South Africa, India, Canada
Major buyers: China (70%+ of seaborne trade), Japan, South Korea, Europe
Tetra relevance: China and South Korea are massive iron ore consumers. Steel products then exported globally.
PRICING
Benchmark: S&P Global Platts 62% Fe CFR China (IODBZ00). Also traded on Dalian Commodity Exchange (DCE) futures.
World Bank Pink Sheet tracks monthly CFR China price.
SPECIFICATIONS (62% Fe Fines)
Fe: 62.0% min
Al₂O₃: 2.0% max (higher = more slag, less efficient)
SiO₂: 4.0% max
Phosphorus: 0.06% max
Moisture: 8.0% max (affects weight on delivery)