BEIJING — The longstanding global pricing benchmark for most traded iron ore cargoes will be adjusted in 2026 to reflect the falling quality of ore from top supplier Australia, pricing service Platts said.
Platts, part of S&P Global Commodity Insights, proposed to revise down the specification for its benchmark index to 61 percent iron content from 62 percent due to the declining quality of Australian iron ore fines, the global price reporting agency (PRA) said on Tuesday.
“The update would have baseline specifications more closely reflecting those of major medium-grade fines traded in the market,” it said in a notice on its website.
The benchmark 62 percent iron ore index has been used to settle contracts among international miners and buyers for decades.
The world’s largest iron ore miner, Rio Tinto, told Reuters on Wednesday that it had lowered the iron content of its Pilbara Blend Fines to 60.8 percent and Pilbara Blend Lump to 61.6 percent, without specifying when the change started.
The change was a result of “both customer requirements and available ore grades”, according to a Rio Tinto spokesperson.
Platts has also proposed to change the iron content of its benchmark 62.5 percent Fe China iron ore spot lump premium to 62 percent.
Both changes will take effect from January 2, 2026, according to the notices.
The Platts benchmark prices futures, options and swaps on the Singapore Exchange, one of the biggest iron ore futures markets in the world.
“Many investors have built positions and will wait for a potential change from the Singapore Exchange to assess whether the current valuation for their positions is reasonable,” said Pei Hao, a Shanghai-based senior analyst at international brokerage Freight Investor Services (FIS).
The Singapore Exchange late on Wednesday announced a proposal to amend iron ore and lump premium contracts priced against the Platts benchmarks to enable contracts from January to reflect the new Platts specifications.
“SGX will apply a one-time monetary adjustment on the Adjustment Date to all contracts with open interest as at and from January 2026 onwards, through members’ margin accounts,” the bourse said in a statement.
Platts on Tuesday started publishing a daily 62 percent/61 percent basis spread to reflect the calculated difference in value between current and proposed specifications. Other price reporting agencies including Mysteel, Argus and Fastmarkets, have also recently launched new 61 percent iron ore indexes.
