Platts proposes to publish new Atlantic iron ore prices, differential

**Platts proposes to assess DR pellet over 65% Fe fines

**Platts proposes to publish 65% Fe FOB Brazil netback fines price

**Platts proposes to publish all-in DR pellet FOB Brazil price

S&P Global Platts seeks feedback on its proposal to expand Atlantic iron ore coverage by launching an all-in price for direct reduction pellet on FOB Brazil, publishing its differential to the 65% fines and launching a new FOB Brazil 65% fines netback, effective April 1, 2020.

67.5% DR PELLET PREMIUM: Platts proposes to publish a monthly assessment for contract iron ore direct reduction (DR) pellet premium. The premium is the value over 65% Fe fines CFR China price-based pricing, adjusted to the location and basis of sale.

Platts would publish this premium alongside its current assessment on the first business day of the month following the London holiday calendar.

Both assessments would represent the value of the 'premium' used in formulating a provisional contract settlement price for high quality 67.5% Fe DR pellets, typically sold in term contracts to steel mills, primarily in Middle East, North Africa, and in the Americas.

Platts currently assesses the DR-grade pellet premium over the 62% Fe IODEX CFR China fines assessment (IODBZ00), adjusted to 65% iron content by using published Platts value-in-use assessment of 1% Fe (IOMGD00), and net-backed to FOB Brazil by using the Capezise Brazil-China freight rate (IONBR00).

67.5% DR PELLET FOB BRAZIL: Simultaneously, Platts proposes to publish an outright, or "all-in", provisional contract price for 67.5% Fe DR-grade pellets on a FOB Tubarao, Brazil, basis. This price would be calculated as a simple sum of the assessed premium and the average of the previous month's values for 65% fines netback FOB Brazil, expressed in dry mt.

65% FINES FOB BRAZIL NETBACK: To support the launch of the all-in DR pellet price, Platts would start publishing 65% Fe FOB Brazil netback fines, which would be calculated on a daily basis. The price would be a netback from the 65% fines CFR China assessment (IOPRM00), using the Capezise Brazil-China freight rate (IONBR00) for the key iron ore route from Tubarao, Brazil, to China, and will follow the Singapore holiday calendar.

Please send all comments, feedback and questions to IODEX@spglobal.com and pricegroup@spglobal.com by January 31, 2020.

For written comments, please provide 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.