Iron Ore Benchmark Index Battle: What It Means for Australian Miners

Iron ore is not just another commodity for Australia. It is the country’s largest export, forecast to generate $114 billion in shipments over the next year. With 915 million tonnes exported last year alone, even small shifts in pricing mechanics can translate into billion-dollar consequences.

That is why a quiet battle over the benchmark iron ore index matters far more than it first appears.

A new index developed by Fastmarkets, and currently being trialled by Rio Tinto, has delivered lower prices than the long-established S&P Global Platts benchmark on 28 of 33 trading days since. . .