Platts introduces maximum document presentation period for seaborne iron ore MOC process

Platts, part of S&P Global Commodity Insights, has introduced a maximum presentation period of up to 38 days after shipment for all bids and offers reported for its seaborne iron ore fines Market on Close assessment process, effective Feb. 19.

The maximum presentation period for MOC bids and offers is an addition to the existing assessment specification of 31 documentation days, to which information is normalized. The change provides standardization to the reporting process and clarity for market participants on the expected document presentation period.

MOC participants reporting offers of cargoes with document presentation periods above the 31-day normalization threshold need to state the presentation period up front up to a maximum of 38 days. Participants reporting bids are expected to accept cargoes with presentation periods up to 38 days.

Platts continues to normalize bids, offers and trades with a documentation presentation period between 32 and 38 days, based on prevailing differentials observed in the market.

The presentation period of documentation is a key factor in iron ore trading as it determines when a cargo may be lifted or resold.

The change reflects market feedback that cargoes with a presentation period longer than 38 days may have restricted potential to be resold in the seaborne market due to a more limited pool of buyers.

Information reported to Platts with a document presentation period beyond 38 days may be normalized and considered for the assessment on a case-by-case basis.

The introduction of a maximum presentation period was initially proposed Dec. 22 in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/122223-platts-proposes-to-introduce-maximum-document-presentation-period-for-seaborne-iron-ore-moc-process

The decision to implement the proposed change was communicated in a subscriber note published Jan. 17: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/011724-platts-to-introduce-maximum-document-presentation-period-for-seaborne-iron-ore-moc-process

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.

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