Platts to introduce MOC timing, increments guidelines for iron ore pellet feed

Platts, part of S&P Global Commodity Insights, will be introducing timing and increment guidelines for its iron ore pellet feed Market on Close assessment process, effective Jan. 27, 2025, to align with existing MOC practices for Asia iron ore fines, lump and pellet.

The timing and increment guidelines will apply to all firm bids or offers reported directly to Platts for publication in the iron ore pellet feed MOC.

Timing and increment guidelines are a key component of Platts assessment methodology, essential to an orderly and transparent publishing process.

When determining a final market assessment, Platts gives the highest priority to fully verifiable and transparent market information from entities that have been reviewed for participation in the MOC.

Platts will also introduce volume and laycan guidelines to specify the minimum or standard volume and loading laycan required for bids and offers published in the pellet feed MOC. Offers for seaborne iron ore pellet feed will need to have a standard 10-day laycan and be of a minimum volume of 50,000 mt, while bids will need to have a minimum 20-day laycan and a volume of 170,000 mt. Sellers will need to narrow the laycan to 10 days when lifting the bids.

MOC timing, increments:

To ensure sufficient time for all market information to be tested, buyers and sellers will submit any firm bids and offers with complete information to Platts editors by phone, instant messenger or email before 5 pm Singapore time.

Counterparties will improve the price of their published bids or offers every five minutes, by a minimum increment of 5 cents/dmt and a maximum increment of 25 cents/dmt.

No price change will be allowed in the final five minutes of the MOC that concludes at 5:30 pm Singapore time.

Buyers and sellers may withdraw their bids or offers at any time during the MOC.

Counterparties must clearly communicate their expression of interest to trade a published bid or offer to Platts price reporters.

Platts may adjust its timing and increment guidelines in the event of market volatility or a disruptive event.

The timing guidelines that will apply are listed in the table below:

The increment guidelines that will apply are listed in the table below:

Platts initially proposed the guidelines in a subscriber note published Dec. 23, 2024, available at: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/122324-platts-proposes-to-introduce-moc-timing-increments-guidelines-for-iron-ore-pellet-feed

Iron ore pellet feed specifications:

The guidelines will apply to firm bids or offers adhering to Platts specifications for its CFR Middle East iron ore pellet feed assessment, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/metals/iron-ore-methodology.

MOC participation review:

Platts applies objective criteria to review entities that wish to participate in the reviewed MOC and monitors all MOC participants to ensure that input data provided by these entities reflect typical market trading practices and standards.

For more information on the counterparty review process, please visit https://www.spglobal.com/commodityinsights/en/our-methodologies/market-on-close.

Entities that wish to participate in the MOC can contact market_integrity_review@spglobal.com

The Metals Timing and Increment Guidelines can be found here: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/metals_timing_increment_guidelines.pdf.

Please send all comments, feedback 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.