Australia’s Rio Tinto to adjust iron ore specifications from Q3: notice

Australia’s Rio Tinto to adjust iron ore specifications from Q3: notice
05/06/2025 08:36:44 UTC|Analysis
AuthorFred Wang<:%20notice&body=https%3A%2F%2Fplattsconnect.spglobal.com%2F%23platts%2FnewsArticle%3FarticleID%3De79586ae-d55e-492f-8eab-45b5b608b3d8%0AArticle%20Highlights%3A%0A%0AInevitable%20move%20due%20to%20orebody%20degradation%20for%20PB%20products%3A%20sources%0APBF%20trading%20into%20discounts%20over%20IODEX%20may%20become%20the%20norm%0A%0A%0AContinue%20reading%20the%20full%20article%20by%20subscribing%20to%20the%20S%26P%20Global%20Commodity%20Insights%20Platts%20Connect.%20Email%20ci.support%40spglobal.com%20to%20learn%20more%20and%20subscribe”>.>

* Inevitable move due to orebody degradation for PB products: sources
* PBF trading into discounts over IODEX may become the norm

Australian iron ore miner Rio Tinto will adjust the specifications of its flagship Pilbara Blend Fines (PBF) and Pilbara Blend Lump (PBL) products from the July-September quarter, according to a notice sent to customers and seen by Platts.
The adjusted specifications for PBF will have 60.8% Fe, 4.3% silica, 2.5% alumina and 0.11% phosphorus, from the current 61.6% Fe, 3.7% silica, 2.25% alumina and 0.098% phosphorus, as per the notice dated May 2.
Rio Tinto did not respond to an emailed request for comment.
The potential move aligns with market expectations, as there have been similar talks since March.
The news on iron ore degradation was already made known way before, so the market has more or less accepted it at this stage, said a China-based steel mill source.
Several other market participants informed Platts, part of S&P Global Commodity Insights, that they had also received direct confirmation from the miner.
Platts assessed the premium of PB Fines over the June futures contract at $1.4/dmt on May 5, following a 170,000 mt trade concluded at $97.85/dmt basis 62% Fe for June 1-10 loading, on a CFR China basis.
Market participants are closely monitoring thePlatts IODEX iron ore benchmark pricefollowing Rio Tinto’s adjustment in iron ore specifications.
Rio Tinto would be the second iron ore miner afterBHP, which lowered the iron content of its flagship brands, Platts reported earlier.
It is either to remain status quo, or to have a new 61% Fe index, or to have both 61% and 62% Fe indexes, the market will be interested to know the way out, said a Singapore-based iron ore trader.
Whether it is a brand spread for PBF against IODEX, or any other directives is what the market thinks will be more impactful at this stage, said a China-based iron ore trader.