PRICE ASSESSMENT
Platts Iron Ore Index (IODEX) Explained
For over 10 years, S&P Global Commodity Insights has brought transparency and efficiency to iron ore markets through robust and independent price assessments.
Our Price Explained
-
What is IODEX?
What is IODEX?
Platts iron ore assessment, or IODEX (Symbol IODBZ00), is a benchmark assessment of the spot value of seaborne iron ore imports into China every day at 5:30 PM Singapore time.
Incoterm & Location
CFR Qingdao, China
Timing
Delivery: 14-56 days forward from the date of publication
Specifications
62% iron, 8% moisture, 4% silica, 2.25% alumina and 0.09% phosphorus
Volume
Min 50,000mt
-
Why is IODEX timestamped at 5.30 pm Singapore time?
-
What is Market on Close?
What is Market on Close?
MOC is a structured price assessment system designed to yield a price assessment reflective of market values at the close of the typical trading day.
The fully transparent system is run throughout the day, and at MOC participants are able to demonstrate value. They can do so by reporting firm, named bids or offers that are open to the market and published in real-time. More information about the MOC can be found at the following links: Platts methodology and Platts iron ore specifications guide.
What is IODEX?
Platts iron ore assessment, or IODEX (Symbol IODBZ00), is a benchmark assessment of the spot value of seaborne iron ore imports into China every day at 5:30 PM Singapore time.
Incoterm & Location
CFR Qingdao, China
Timing
Delivery: 14-56 days forward from the date of publication
Specifications
62% iron, 8% moisture, 4% silica, 2.25% alumina and 0.09% phosphorus
Volume
Min 50,000mt
Key Features of Platts IODEX
Platts IODEX is fair, transparent, and robust, bringing necessary insight to a previously opaque market. Click on the tabs below to learn more about key features of Platts IODEX.
-
Inclusive and open participation
Inclusive and open participation
Platts IODEX is built upon direct and open participation from across the whole value chain, including buyers, sellers and traders. Whether Platts subscribers or not, all active iron ore market participants are welcome to participate in the IODEX assessment process. To do so, all they need to do is to report market information by contacting the Platts iron ore team at IODEX@spglobal.com.
While the market is inherently more fragmented on the consumer side of the supply chain, Platts ensures it proactively surveys a large number of steelmakers in its assessment process. In 2020, 57 different Chinese steelmakers provided information used in Platts iron ore assessments.
S&P Global Platts provides an independent assessment of where commodity prices fall each day and has no financial stake in the price going up or down. Commodity prices are solely determined between buyers and sellers.
-
Transparent
Transparent
From methodology to a single price assessment, S&P Global Platts provides unparalleled transparency in every aspect of IODEX.
Platts methodology prioritizes transparent information, thereby encouraging greater transparency for the market as a whole. Insight into methodology and specification are made freely available here in the Specifications Guide Global Iron Ore and Metals MOC Timing and Increment Guidelines.
Every assessment, every day is fully transparent. Platts publishes every data point that underlies our assessments for all in the market to see and comment on – ensuring the integrity and relevance of our valuations. Platts also publishes a daily rationale explaining the assessment logic and commentary on market activity and trends.
-
Robust
Robust
Deep and robust data is a cornerstone of IODEX. Platts collected 939 spot seaborne iron ore transactions in 2020 and 1,015 in 2019. In 2020, Platts published 21,102 heards.
Due to the complexity and variety of data collected, Platts aligns reported market information to the base standard reflected in Platts price assessments through normalization.
Factors normalized include:
- Brand differentials
- Cargo delivery timing
- Impurities (VIU)
- Discharge optionality
- Vessel size, presentation of documentations when needed
Inclusive and open participation
Platts IODEX is built upon direct and open participation from across the whole value chain, including buyers, sellers and traders. Whether Platts subscribers or not, all active iron ore market participants are welcome to participate in the IODEX assessment process. To do so, all they need to do is to report market information by contacting the Platts iron ore team at IODEX@spglobal.com.
While the market is inherently more fragmented on the consumer side of the supply chain, Platts ensures it proactively surveys a large number of steelmakers in its assessment process. In 2020, 57 different Chinese steelmakers provided information used in Platts iron ore assessments.
S&P Global Platts provides an independent assessment of where commodity prices fall each day and has no financial stake in the price going up or down. Commodity prices are solely determined between buyers and sellers.
Evolution of the Iron Ore Market
From S&P Global Commodity Insights launching the first daily iron ore spot price assessment, Platts IODEX, on June 2, 2008, to Platts 62%-Fe IODEX CFR China reaching all-time highs in Q2 2021, the iron ore market has evolved tremendously over the past 10 plus years. This timeline depicts the key milestones from recent iron ore history that have shaped the industry.
IODEX Myths vs Facts
-
Myth: Only "primary" market information, i.e. direct sales from mining companies) is used?
Fact:
Platts doesn't just consider direct miner sales. The assessment process considers information from the entire spot market, including secondary transactions, bids and offers. All active market participants are welcome to participate in the iron ore assessment process.
-
Myth: IODEX is "set" by Platts?
Fact:
Platts does not "set" IODEX — it simply provides an independent assessment of the value of spot physical iron ore in the market each day. It is not based on opinion or forecast.
-
Myth: Only one iron ore brand is considered in the assessment?
Fact:
Platts considers a basket of iron ore brands - BHP's Mining Area C Fines (MACF), Newman Fines (NMF), Rio Tinto's Pilbara Blend Fines (PBF), Vale's Brazilian Blend fines (BRBF) and BHP's Jimblebar Fines (JMBF).
-
Myth: IODEX reflects the value of both the seaborne market and the Yuan-based market at Chinese ports?
Fact:
IODEX only reflects the value of the seaborne iron ore market. Platts publishes separate price assessments which reflect of the Yuan-based market at Chinese ports.
-
Myth: IODEX considers both trading activity in the spot market and for long-term contracts?
Fact:
IODEX only considers trading activity in the spot market.
-
Myth: Platts only considers information from the Market on Close process or from brokerage platforms?
Fact:
When assessing IODEX, Platts editors track data all day long, and consider all seaborne spot market information, including trading activity from bilateral negotiations, on brokerage platforms, via tenders and via Platts MOC.
Fact:
Platts doesn't just consider direct miner sales. The assessment process considers information from the entire spot market, including secondary transactions, bids and offers. All active market participants are welcome to participate in the iron ore assessment process.
Recent IODEX Price History
The recovery of global steel demand last year has driven the market for its main ingredient, iron ore, soaring in Q2 2021, and helped S&P Global Commodity Insights 62% Fe IODEX CFR China reach all-time highs. As the world enters post COVID-19 recovery, all eyes are on the continuously evolving iron ore market.
