Rising demand for lower quality iron ore has offset the premiums that were put on higher grade ore , as price corrections in the Chinese spot market for coal and iron ore took place in November . A weakening of raw material inputs , silica and alumina , in November have decreased the cost of lower grade ores , while the price of higher grade 65 % iron ore has fallen 15 % from its peak of $ 97.25 / ton on 1 November . At the height of the difference in spread , high grade iron ore held a premium of 39 % over benchmark 62 % ore in mid - July .
Rising demand for lower quality iron ore has offset the premiums that were put on higher grade ore, as price corrections in the Chinese spot market for steel and iron ore took place in November. A weakening of raw material inputs, silica and alumina, in November have decreased the cost of lower grade ores, while the price of higher grade 65% iron ore has fallen 15% from its peak of $97.25/dmt on 5 November. At the height of the difference in spread, high grade iron ore held a premium of 39% over benchmark 62% ore in mid-July.