Platts updates Asia Iron Ore MOC volume guidelines for seaborne Pilbara Blend Fines

Platts, part of S&P Global Commodity Insights, has updated its Asia iron ore Market on Close (MOC) volume guidelines for seaborne Pilbara Blend Fines (PBF), effective Jan. 2, 2024, reflecting typical traded spot market volumes.

Prior to the change, Platts specified 80,000-90,000 mt and 170,000-190,000 mt as standard volumes for seaborne PBF bids in the MOC assessment process. Platts has removed 80,000-90,000 mt as a standard volume and maintained the 170,000-190,000 mt volume range.

Spot market data published by Platts between January 2022 and September 2023 showed that 86% of all spot PBF transactions observed were of cargo sizes 170,000-190,000 mt, while those that were 80,000-90,000 mt accounted for just 3% of the trades. The remaining trades were for cargo sizes outside of these volume ranges.

Feedback from market participants indicated that a price difference could arise between spot cargoes of sizes 170,000-190,000 mt and 80,000-90,000 mt due to the relatively small number of trades that take place in the latter size.

Following the change, 170,000-190,000 mt is the only cargo size accepted by Platts for PBF bids reported in its iron ore MOC assessment process.

For offers, volumes differing from 170,000-190,000 mt and above the 50,000 mt minimum volume specification for CFR China PBF fines may be considered for publication and normalized on a case-by-case basis, using differentials based on prevailing market conditions.

Other methodology specifications remain unchanged.

The change was initially proposed Nov. 6 in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/110623-platts-proposes-to-update-asia-iron-ore-moc-volume-guidelines-for-seaborne-pilbara-blend-fines.

The decision to implement the proposed change was communicated in a subscriber note published Dec. 4: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/120423-platts-to-update-asia-iron-ore-moc-volume-guidelines-for-seaborne-pilbara-blend-fines.

Platts full iron ore assessment specifications are available here: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/metals/iron-ore-methodology.

Please send comments and questions to IODEX@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.