Argus and Mysteel Forge Partnership to Enhance Iron Ore Pricing Standards

The Strategic Alliance Between Argus and Mysteel

In a significant development for the iron ore market, Argus Media and Mysteel, a key player in the metals pricing sector, have formalized a partnership. This collaboration aims to improve the accuracy and relevance of iron ore pricing benchmarks, specifically focusing on the 61% and 62% iron grade seaborne ores imported into China.

The agreement was solidified through a memorandum of understanding (MoU) signed on May 27, 2025. With this partnership, both companies are set to publish official average index prices that will set new pricing standards for iron ore transactions.

Addressing Market Needs

Traditionally, the pricing of iron ore has been somewhat fragmented, relying on unofficial 'baskets' that average prices from various sources. These informal benchmarks have caused inconsistencies that can lead to market inefficiencies. Buyers and sellers in the industry have expressed the need for a more standardized approach, especially in transactions involving the vast and complex Chinese market.

As a response to these demands, the new pricing indices—referred to as AM62 and AM61—will facilitate better tracking of market trends and assist in risk management strategies for market participants. The average index prices will be calculated and published monthly, allowing for a more structured assessment of the market.

A New Reference Point

Adrian Binks, the chairman and CEO of Argus, emphasized the necessity of expanding market reference options, stating, "Market participants have been pushing for a greater range of index averages and for new references for 61% Fe, since these will better reflect the market." This statement highlights the industry's evolving dynamics and the growing requirement for robust and reliable pricing mechanisms.

The introduction of the AM61 index, which reflects the grade of iron ore predominantly exported from Australia, is also noteworthy. This adaptation is a response to the decreasing average grades being observed at Western Australian mining operations due to depletion over time. By providing this new index, Argus and Mysteel aim to ensure that pricing is more representative of current market realities.

Collaboration that Elevates Standards

Zhu Junhong, chairman and founder of Mysteel, expressed his enthusiasm for the partnership, highlighting the complementary nature of both companies' strengths. The synergy between Argus's established international pricing mechanisms and Mysteel's deep market insight creates a comprehensive service that addresses the needs of a wide array of stakeholders in the iron ore and steel sectors.

The newly introduced pricing indices will be computed based on a volume-weighted average of actual market transactions, ensuring they reflect fair market values. This robust methodology is designed to enhance transparency and trust in the pricing process.

Advantages for Stakeholders

This partnership not only streamlines the pricing process but also reinforces Argus and Mysteel's commitment to providing valuable market intelligence. Both companies will continue to publish their own independent assessments for iron ore prices. However, the AM61 and AM62 indices will serve as essential benchmarks for pricing iron ore on a delivered-to-Qingdao basis, recalculated at the end of each month.

With over 1,500 employees and over three decades of expertise, Argus Media is renowned for its independent market intelligence across various commodities globally. In contrast, Mysteel is recognized as a premier source of market information in China, being the first to achieve IOSCO compliance for iron ore pricing.

Conclusion

As the iron ore market undergoes transformation driven by these new pricing standards, the Argus and Mysteel collaboration marks a pivotal moment. This partnership stands as a testament to the need for adaptability and innovation in pricing mechanisms for the dynamic global market. With these new indices, stakeholders can expect an enhanced framework for assessing iron ore prices, ultimately paving the way for more informed decision-making in the industry.