Rana Gruber secures iron ore swaps, adapts to new benchmark

Rana Gruber ASA has finalized new iron ore swap contracts for January through June 2026, totaling 120,000 metric tons at prices ranging from $100.45/mt to $103.35/mt. This brings the total outstanding swap volume for Q1 2026 to 180,000 mt at an average of $100.99/mt, and Q2 2026 to 45,000 mt at an average of $101.05/mt. These agreements represent the first fixtures following the updated iron ore benchmark from Platts and SGX.

The global benchmark is shifting from 62% Fe to 61% Fe specifications for contracts expiring from January 2026 onwards. Existing contracts will be adjusted, leading to an approximate $2.6/mt reduction compared to previous Fe 62 prices. Despite this, Rana Gruber anticipates a negligible impact due to a similar drop in spot futures market value.

Rana Gruber, whose iron ore concentrate is close to 65% Fe, typically realizes a premium over benchmark prices. The company aims to link future deliveries to a higher-paying Fe65 index, with more visibility expected at its November capital markets day. This strategic move counters a trend of quality degradation in global iron ore supply.