Our Price Explained
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What is Platts IODEX?
What is Platts IODEX?
IODEX is the most trusted, transparent and widely used price benchmark for seaborne iron ore. It delivers an independently assessed daily spot price that reflects real-time market value and underpins physical spot and term contracts globally, as well as financial derivatives.
The Platts Iron Ore Index, or IODEX (IODBZ00), is a daily assessment of the spot price of seaborne iron ore fines delivered on a CFR Qingdao, China basis. The index reflects the value of medium‑grade fines in the physical spot market at the close of trading each business day.
Platts IODEX is not origin specific and represents normalized market values derived from transactions, bids and offers for brands with iron content between 60% to 63.5% delivered into China.
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Why does Platts IODEX exist?
Why does Platts IODEX exist?
Platts IODEX provides a transparent, market‑reflective reference price for seaborne iron ore, adhering to a consistent, published methodology. It has replaced the annually negotiated benchmark pricing mechanism with a daily, independently assessed index that reflects real‑time spot market fundamentals and supports physical trade, contract pricing and risk management.
Since 2008, Platts IODEX has become the leading global price benchmark for iron ore.
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How is Platts IODEX assessed?
How is Platts IODEX assessed?
Platts IODEX is assessed daily through active market testing of bids, offers, expressions of interest and confirmed trades observed in the physical iron ore market. Platts publishes headlines containing such pricing information through the day, and based on those inputs reflects where the standard, repeatable price of iron ore has traded, or is transactable, as of 5:30 pm Singapore/Beijing time (0930 GMT).
Market on Close (MOC)
The assessment is underpinned by the Platts Market on Close (MOC) process, in which reviewed market participants report datapoints in a transparent, real‑time manner, and where these datapoints are subject to market testing to demonstrate tradable price levels.
Normalization (quality, timing, location)
Like other commodities traded in the physical market, including extracted minerals, iron ore can vary in terms of quality specifications. Price differences can also arise from a cargo’s delivery timing, location and payment terms.
Platts accounts for these differences by normalizing them to the IODEX benchmark specifications, ensuring that all inputs are comparable on a like-for-like basis:
- Quality differences (chemical, physical and metallurgical)
- Delivery timing
- Location and freight terms
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What are the Platts IODEX specifications?
What are the Platts IODEX specifications?
Platts IODEX specifications define the standard reference assumptions used to assess and normalize iron ore transactions, ensuring that cargoes traded with different characteristics can be compared consistently and transparently.
Location
- CFR Qingdao, China
- Other ports and freight terms normalized to this basis
Timing
- Assessed daily at 5:30 pm Singapore/Beijing time (0930 GMT)
Quality
- 61% Fe
- 2.5% alumina
- 4.5% silica
- 0.1% phosphorus
Cargoes are adjusted using impurity penalties and premia.
Volume
- Reflects typical seaborne spot cargo sizes into China
- Volume differences normalized for consistency
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Which iron ores make up the IODEX?
Which iron ores make up the IODEX?
The IODEX basket comprises liquid, widely traded iron ore brands that together reflect the value of medium‑grade fines delivered into China. These brands provide the observable market data used to assess the benchmark price.
While hundreds of different iron ore products coexist and compete in the market every day, the five main brands in the medium fines category stand out.
Pilbara Blend Fines (PBF)
Mining Area C Fines (MACF)
Newman High Grade Fines (NHGF)
Jimblebar Fines (JMBF)
Brazilian Blend Fines (BRBF)
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How does Platts IODEX enable more efficient pricing in the iron ore market?
How does Platts IODEX enable more efficient pricing in the iron ore market?
Platts IODEX enables confidence, clarity, and consistency in iron ore pricing by addressing key market challenges through transparency, inclusivity, and methodological rigor.
Inclusivity
The Platts IODEX is formed via an inclusive price assessment process with inputs from across the steelmaking value chain, including steelmakers, traders and mining companies.
Transparency
Platts IODEX is formed through a transparent and clearly defined methodology, and Platts welcomes market participants to query and scrutinize how each day’s assessments are arrived. By publishing market data underlying the assessments, a daily rationale that outlines the steps to arrive at the final print, and providing open access to specifications and methodology, IODEX gives market participants visibility into how prices are formed and confidence in the benchmark.
Methodological rigor
Physical iron ore transactions vary widely by brand, quality, delivery timing, and commercial terms. Platts IODEX applies rigorous normalization techniques to align reported market data to a common basis standard, enabling like‑for‑like comparisons and consistent pricing across diverse physical trades. By knowing what the IODEX represents, market participants can price cargoes of differing qualities against it through the use of premia and discounts.
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Platts Iron Ore MOC Heards
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Contact Platts Iron Ore Editorial Team
Contact Platts Iron Ore Editorial Team
For further information on the Platts iron ore MOC, please contact iodex@spglobal.com