Subscriber note: Platts amends Asia lump iron ore methodology, launches outright values

S&P Global Platts has amended the normalization methods of the daily spot lump premium assessment (IOCLP00) and started publishing outright values for iron ore lump on January 2, 2020.

Platts now assesses the lump premium (LP) over a corresponding forward strip of 62% iron ore fines, normalizing for lump physical market structure. Platts accounts for physical market structure in its assessment of the physical LP. In the absence of physical market structure information, Platts may consider lump derivative market structure and fines market structure.

In response to the increased prevalence of index-linked lump transactions, Platts now considers index-linked price points in its LP assessment, measuring these alongside observable outright prices.

Platts has also started publishing outright spot prices for iron ore lump on a daily basis in US dollars per dry metric ton ($/dmt), reflecting the value of lump on CFR Qingdao basis. The specifications are aligned with the existing specifications for the lump premium assessment and reflect material with 62% iron content, 4% moisture, 3.5% silica, 1.5% alumina, 0.075% phosphorus and 0.02% sulfur.

The outright spot assessment is published in SBB Steel Markets Daily, and Platts Metals Alert on fixed page 1117 and in the Platts price database under the following codes:

Description Daily code Monthly Average Rolling monthly average

Iron Ore lump Outright Price CRF China IOCLS00 IOCLS03 IOCLS33

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