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The global iron ore market is at a turning point as quality becomes a critical focus. While steelmakers race toward cleaner production methods that require higher-grade ore, the supply side tells a different story. Declining grades and rising impurities are forcing market participants to reassess traditional benchmarks and adopt new pricing methodologies that reflect the realities of today’s traded material The fundamental mismatch between what the market demands and what producers can deliver is rewriting the rules. As the industry stands at a crossroads where environmental goals meet geological limits, iron ore quality is at the heart of these profound changes. This is the second release in our iron ore paradox series. If you missed part one, catch up on the insights here: The iron ore paradox: Short-term realities and long-term goals. The structural shift in supply Major producers like Rio Tinto and BHP now face tough realities. Their prized Pilbara Blend Fines, which maintained 62% iron content for nearly twenty years, recently dropped to 60.8%. This marked the first official downgrade in two decades and signals a broader trend driven by falling grades across the industry. The problem goes beyond base iron content. High-grade ore seams that once fed global steel mills are nearly exhausted. Producers extract from older, deeper deposits, making it harder to maintain consistent product quality. (Become a Fastmarkets metals and mining customer today.)