Platts proposes IOPEX 62% Fe domestic China iron ore FOT Yangtze River port, brand price assessments

Following industry consultation, Platts, part of S&P Global Commodity Insights, is proposing to launch daily IOPEX 62% Fe domestic Chinese iron ore price assessments and two brand price assessments on a free-on-truck Yangtze River ports basis, effective April 3, 2023, expanding Platts existing suite of port stock assessments.

The proposal is in response to growth in liquidity in the Chinese portside market and industry demand for port assessments in additional regions. Platts conducted an industry-wide consultation before making the proposal, which can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/120522-platts-opens-consultation-on-iopex-domestic-chinese-iron-ore-port-stock-indices

The new assessments would represent the spot price of medium-grade iron ore fines, as well as brand assessments of Pilbara Blend Fines and Newman High Grade Fines, in Yuan/wmt, on an FOT basis, reflecting trading activity in the eastern Chinese cities of Jiangyin, Taicang and Zhenjiang along the Yangtze River. Platts may normalize price information obtained for medium-grade fines from other Yangtze River port locations to the stated location basis.

Platts is also proposing to launch an import parity price (IPP) calculation for Yangtze River ports assessments in $/dmt, accounting for the moisture content, exchange rate, port charges and value added tax.

The proposed assessment specifications are:

The assessments would consider market information reported to Platts and published through the day, including firm bids and offers, transactions and indications, as well as any other information deemed relevant to the assessment process. Full description of the Platts assessments methodology and data hierarchy can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Platts-Assessments-Methodology-Guide.pdf

The assessments would be published on fixed page 0120 of the real-time Platts Steel Alert and Platts Metals Alert, on SBB Steel Markets Daily, on Platts Dimensions Pro, in Platts Market Center and in the Platts price database.

Platts invites feedback on this proposal to IODEX@spglobal.com and pricegroup@spglobal.com by March 3, 2023. 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.