Platts clarifies 65% Fe iron ore fines CFR China assessment methodology

S&P Global Platts clarifies that price information on outright, floating and spread basis are considered in the 65% Fe iron ore fines CFR China assessment.

The clarification follows enquiries by the market on the use of floating price information in the assessment process amid the growth of floating price activity in the 65% Fe market segment and Platts November 2020 launch of a 65% Fe derivative forward curve assessment.

Platts physical price assessments use a variety of inputs, including outright and floating price bids, offers, transactions and indicative values. In the event of an observed conflict between outright values and index-linked price points, outright values prevail in Platts final published assessments.

Platts establishes the hedgeable, outright value of floating and spread price indications by applying them to the observable, prevailing value of underlying relevant derivative instruments. More information about Platts assessment methodology can be found here: www.spglobal.com.

The clarification refers to the 65% Fe CFR North China assessment (IOPRM00), which is published on fixed pages 1105 and 1106 of the real-time Platts Metals Alert and Platts Steel Alert, in SBB Steel Markets Daily and in Platts Market Data Category SI.

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

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