fe62 iron ore prices, page-8

Hi I don't know if this helps,

By poster Profit Taker :-

"Look for the "DMTU" (dry metric tonne unit) price, which is the price per percentage point determined on the basis of benchmark grade ore (around 67% Fe I think)."

At a guess you're taking about lump not fines. Hamersley lump (RIO), is the benchmark for lump. I don't think it's as high as 67%. VALE in South America maybe producing that.

AGO produces a "fines" product I believe. The benchmark for fines is yandi fines @ 58% Fe. AGO fines were 56.5% Fe when I last looked.

The DMTU will be lower for fines then for lump. Fines are too light for the furnace. The material needs to be turned into pellets or artifical lump in order for the material to fall into the "dead man's chamber" of the furnace, where the Iron will seperate from the slag. Because fines need to be processed by sintering. A fines product has to be cheaper in price then lump to remain attractive to the mill.

Unfortunity for Atlas, they won't get HIY fines price and AGO's price is set to their own negotiations anyway. Not neccessarily the benchmark. Atlas has a lower quality ore then the benchmark, due to high Alumina and high P, anything over 0.08% P attracts penalties. Steel can become too brittle over 0.08% P, or 0.06% P for flat steel.

The other thing that will attract penalties for fines is a low LOI figure. A number higher then the benchmark is good. A number lower is bad. LOI stands for Loss on Ignition. When the fines go through the sintering process. The material is heated to 1100 degrees. During this stage the Crystallized water is burnt off - the elements, H2O, CO2 and C . The Iron "mass" has changed to Calcined Iron (CaFe).

Hematite IO contains much higher amounts of H2O, CO2 and Carbon within the rock than Magnetite IO. Magnetite IO is a lot more like Granite, where as Hematite IO is generally more porous. Some Hematite Channel Iron Deposits (CID's) will have more Crystallized Water (H2O, CO2 and Carbon) contained in the rock than other Hematite rocks.

To give some figures,

Your average Magnetite contains 2-4% Crystallized Water.
Your average Pillaba fines are 3-9% " "
The benchmark - Yandi fines 9-10% " "

The highest that I'm aware of in the Pilbara is BC Iron with 12.1% Crystallized Water (Average blend)
Deposits may have higher LOI percentages. But that is different to the same mines DSO. Which is usually an average blend of the area as a whole ... If that makes sense.


An example using the benchmark - yandi fines.

58% Fe
LOI - 9.5%

1000Kg =
580Kg Fe
95Kg Crystallized Water.
1000 minus 95 = 905.
580/905 = 64.1 CaFe

And with Atlas Iron

56.5% Fe
LOI - 9.1%

1000Kg =
565Kg Fe
91Kg Crystallized Water
1000 minus 91 = 909
565/909 = 62.16% CaFe

Why this is relevant is because the mill is paying for each percentage of Fe. However if a mine has a higher LOI figure to the benchmark. The mill is unfairly being penalised. For fines, the mill takes most notice of the CaFe figure. Not the Fe figure. Since it is the CaFe that is fed into the furnace.