Replies to post #6667 on The Rising Influence of Rising Affluence

[DewDiligence]

Iron-ore pricing quiz:

Benchmark 62% grade iron-ore edged up 50c to $146.30 /t on Thursday…

Buyers always pay a premium relative to the benchmark price for ore that has >62% Fe content. In the past few months, this premium has fallen from about $10 per 100 basis points of addition Fe content to about $2.50 per 100 basis points of additional Fe content.

Q: Why has the premium for ore with >62% Fe content fallen? (Hint: there are two answers.)