Iron Ore 62% Fe Price
What the 62% Fe Benchmark Measures
The price for 62% Fe iron ore sets the basic value for shipments of iron ore containing 62% iron, shipped to China. You're likely to see this figure quoted most often in the industry. Fe is shorthand for iron’s chemical symbol, which means the 62 Fe label refers to 62% elemental iron in dry ore.
Every major steel plant relies on iron ore. Prices are given per dry metric tonne, counting only the ore’s mass minus moisture. The "CFR China" term means the seller pays freight to China’s port, but as soon as the ore is loaded onto a vessel, the risk passes to you as the buyer.
How the index is set and used
Iron ore isn’t traded on a single exchange platform like gold or copper. Instead, agencies including S&P Global Platts, Argus, and Fastmarkets gather deal information from the market to publish daily indices. These indices form the foundation for most seaborne contract pricing, and some futures rely on them too. It’s unlike copper, which trades through the London Metal Exchange.
Steel production directly affects iron ore demand. China, being the leading steelmaker and iron ore importer, often sets the direction for market prices. So if demand from steel mills is rising, iron ore demand tends to follow. If that demand drops, iron ore prices frequently decline. Price swings can be abrupt, and investing in iron ore futures or related stocks means you might lose money.
Grade, freight, and delivery terms
The benchmark is based on a standard grade and purity. Ores that have more iron or fewer impurities, such as lower silica, alumina, or phosphorus, command higher prices. But if the grade is lower, or impurities are higher, there's typically a price discount. Because the stated price is delivered to China, freight makes up a large portion and depends on shipping distance and vessel rates at the time.
Most of the world’s shipped iron ore comes from Australia and Brazil. If you want a better handle on market quotes, read our guide on spot vs futures prices to see what type of price is being reported. For detail on wider price influences, check out what drives industrial metal prices.
Worked example: comparing ore grades per tonne of iron
Imagine you’re looking at a 62% Fe cargo priced at $100 per dry tonne, and a 58% Fe cargo at $90 per dry tonne. Which is a better buy per unit of iron?
One tonne of 62% Fe ore gives you 620 kg of iron; that’s about $0.161 per kg ($100 divided by 620). The 58% Fe ore holds 580 kg per tonne, which is about $0.155 per kg ($90 divided by 580). Here, the lower-grade ore is less costly per kilogram of iron, but more material must be moved and processed for the same finished steel output.
Frequently asked questions
Why do iron ore prices depend on grade?
Grades matter because higher-grade ore supplies more usable iron per tonne and typically produces less waste for steelmaking. Because of this, higher grades earn a premium and lower ones sell at a markdown. The 62% Fe figure is the market’s reference, with all other grades adjusted around this point.
Who publishes the iron ore price index?
Index prices usually come from agencies such as S&P Global Platts, Argus, and Fastmarkets. They report prices based on current market trades and deal information. Supply contracts and some futures use these published indices. Agencies publish detailed methodology guides, so it’s worth checking their documentation if you need pricing specifics.
Is iron ore an investment I can buy?
You can get exposure to iron ore prices by trading futures, buying certain funds, or investing in mining company stocks. Every option involves different risks, and iron ore prices can move unpredictably, so there's a chance of loss. Use your country's official regulator register to check any provider, and always read product documents thoroughly before investing.